Shanxi Province is in a period of economic transformation restructuring, which requires to develop low-carbon economy, and low-carbon economy's development needs the support of policy, technology and financial capital. The most important is the financial support. To realize the economy transition, finance innovation is necessary, which means traditional finance should be transformed to carbon finance. However, the carbon finance in Shanxi is undeveloped. There, are less participants to carbon financial market, only single type of carbon financial products and short of professionals; the intermediary institutions and carbon trading market are immature. Thus, Shanxi Provincial Government should make regulations to creat a favorable legal environment and establish incentive and supporting policies, such as green credit, interest subsidy, tax preference, fiscal subsidies, etc. for the carbon finance.
