Research On Establishing And Operating Mechanism Of Carbon Trading Futures Market

In2011, the global carbon trading volume reached176billion dollars, trading volume reached103tons, of which, the carbon futures trading volume accounted for more than80%. Carbon futures have become mainstream product of carbon trading market. According to the World Bank predicts, global carbon transaction volume will reach3.5trillion in2020, far more than the transaction scale of oil market. Carbon trading market will become the world’s new trading center. China is the world’s largest emitter of greenhouse gases. China’s eonomic development shows typical characteristics of high energy consumption. Therefore China is facing huge international pressure to reduce emissions. China is also the biggest supplier for world’s CER but has no right to speak on formation of the carbon price. At present, China’s carbon market is only in the initial stage of spot market, has not carried out the international mainstream product-carbon futures. In view of this, this paper puts forward on establishing theoretical framework and empirical study, desiging operation mechanism, and designing financial ecological high-end carbon futures products for China’s carbon futures market. Reference to the experience of EU and USA; establish China’s carbon futures market; design mechanism and build security system, in order to provide funds and technology for reducing greenhouse gas emissions, to provide price discovery function and hedging method for carbon spot market. This paper will provide theoretical references for establishing China’s carbon futures market.Based on the summary of relevant research literature domestic and abroad, this paper analysis the status quo of China’s carbon market at first, points out the main problems existed. Analyze on the development experience and lessons of carbon futures market of EU and USA. Combining with the reality of our country, draw lessons to build carbon futures market. Second, construct China’s carbon futures market. Construct the theory framework at first. Design theory frame and analyze the posibility of establishing China’s carbon futures market from both internal and external conditions. Design carbon market system of center with local multi-level radiation. Design construction path for China’s carbon futures market, divided into three stages: test phase (2013-2015); developing stage (2016-2020) and mature stage (2021-2030). Then analyze on the establishing efficiency of carbon futures market. Point out that price discovery function of carbon futures market is the essence of establishing efficiency. Taking market price data of EU ETS carbon spot and futures as sample, and proves that EUA futures and CER futures have good market efficiency. But the government should pay more attention to EUA futures during supervisions. Third, design operating mechanism for China’s carbon futures market. Design market mechanism at first. Point out that develop the CDM secondary market mechanism basing on the CDM primary market; develop voluntary emissions trading mechanism relying on the CDM project market as first, then converted into total control voluntary emission reduction mechanism; actively cultivate mandatory emissions trading mechanism based on the quota; give priority to establish regional carbon market mechanism for unbalanced development of economy. And design products of VER futures, CER futures, CCER futures and CUA futures for China’s futures market. Design participation and establish carbon asset management companies, carbon credit rating agencies, carbon trading legal service agencies and other carbon intermediary service organization. At last, build safeguard system for China’s carbon futures market. Improve policy support system from the macro level; put forward for the first time to develop "carbon emissions","carbon futures trading management ordinance","carbon futures exchange management approach","carbon derivative trading rules" and other policies and regulations; Establish supervision system from the meso level, design carbon market supervision mechanism. The leading group of State Council to fight climate change is set to the supreme authority. China financial rgulatory institutions, national environmental regulatory agency and state energy regulatory agency constitute the main part of carbon supervision system. Propose to establish unified carbon emission reduction statistical accounting and environmental quality management system and registration system etc. And clear supervision rules for carbon futures trading supervision. Design supervision coordination mode with China Securities Regulatory Commission, carbon futures exchange and Futures Industry Association, the three levels supervision coordination. Construct the path plan for carbon supervision system. Set up other accessory supporting system from micro level.Establishing operation mechanism of carbon futures market is a huge systematic project. Carbon futures market is an emerging market in the global space, which is in the early stage of development. Carbon trading market is affected by the global climate policy significantly, and need to be adjustd by development direction and process. This study will provide theoretical support and decision-making basis for establishing China’s futures market.