The State Council, China's Cabinet, recently announced it is setting up pilot zones for green finance reform and innovations.

The pilot zones will be in the Xinjiang Uygur autonomous region and Guangdong, Guizhou, Jiangxi and Zhejiang provinces.

According to a State Council executive meeting chaired by Premier Li Keqiang, China will explore replicable ways to boost green financing in the four provinces and autonomous region that cover the east, central and west parts of China.

The central government will provide supporting fiscal, tax, and land policies for green industries and projects.

The State Council will also encourage the development of "green credit", taking the environmental credentials of companies into account.

Chen Yulu, vice-governor of the People's Bank of China, said at a news conference on Friday that green finance is developing rapidly in China, and the government will support and encourage the innovation of green financial products and services.

The pilot zones will explore reforms in six aspects of green finance including the system, market, products and services, and focus on institutional innovation, Chen said.

The emphasis will be on sustainability, and a positive incentive mechanism to promote the development of green finance will be established and further improved, he added.