Research On China’s Carbon Finance Legislation

Since the reform and opening-up over three decades ago, China has witnessed remarkable achievements in its economic development, and yet devastating energy consumption and destruction as “Statistical Communiqué” published by the National Bureau of Statistics of China reveals, the sustained high proportion of production and supply relying on coal-driven heat power and electricity demonstrates that currently our economic growth pattern remains one with highly-consumed resources and energy. All countries have unveiled measures of how to reduce energy consumption. To develop low-carbon economy, transform economic growth pattern and endeavor to seek a sounder and more rational economic mix is a new project facing various countries to achieve sustainable development.The report on the 18 th CPC National Congress in 2012 have proposed we have to press ahead with ecological progress so as to transform the economic pattern. Thus to establish and grow carbon-financial markets is regarded as a crucial way to develop low-carbon economy which has been a hot topic. As the largest Carbon Emitter Permits in the world, China now is confronted with such acute issues as backward carbon-financial development as well as carbon-financial markets to be fostered and improved. To this end, China is in urgent demand for relevant law systems stipulated by the state, so as to regulate the establishment and operation of carbon-financial markets. It has a close bearing on achieving targets and demands mentioned above by drawing upon successful experience of other countries, in an endeavor to seek a carbon-financial law system that suits China’s realities.Centering on fundamental issues concerning carbon-finance and its market, the author touches upon the reason for, categories and functions of carbon-finance, and combs through its current conditions domestically and overseas as well as legislative practices, aiming at analyzing international and domestic barriers to law in China’s carbon-financial market. In terms of the international law, carbon trading is void of international unified norms; it lags behind in time effectiveness of compulsory emission reduction obligations; it’s too complicated in compliance review for carbon-financial items. In terms of the domestic law, there exist barriers to law in financing and carbon trading and it lacks the law venture controlling mechanism, etc. A research into these barriers is designed to provide legislative assistance to China’s carbon-financial markets.A clear law framework is needed to promote the legislation of carbon-financial growth and top priorities should be given to confirmation of legislative principles and properness of legislative models. Moreover, it’s indispensable to ensure specific and explicit institutional designs as well as arrangements. Exploring the sound development of Chinese carbon-financial markets, this thesis aims to establish a domestic carbon-financial markets in line with regulations, strive for the establishment of international unified norms and contribute to winning our voice therein.