Amid the global backdrop of climate change and the urgent need for ecological conservation and green development, green budgeting has emerged as an effective tool for integrating environmental sustainability into fiscal policies and budgeting processes.

Although China has not yet established a comprehensive institutional framework for green budgeting, key green elements are already present across its fiscal policies, covering government expenditure, taxes, public procurement, as well as national funds and bonds. To advance the greening of China’s budgeting system through a systematic approach, the United Nations Development Programme (UNDP) in China has partnered with the International Institute of Green Finance (IIGF) of the Central University of Finance and Economics. Together, they have co-developed this report, which reviews international experience, compares them with China’s methods, analyzes the feasibility of implementing green budgeting in China, and offers policy suggestions. Key recommendations include clarifying the role of green budgeting within the overall fiscal policy design and national development plans, defining criteria for what qualifies as 'green' for budgetary objectives, expanding the scope to include all stages of the budgeting process, enhancing the legislative foundation, and applying a pilot approach to refine the methodology of green budgeting.