Research On EU And USA Legal System Of Carbon Emission Trading

The global climate change has become the concerns of the whole worldtoday. Climate change would press great threat to the natural system andeconomical society. So it’s necessary for each government to decreaseand restrain the emission of greenhouse gas in order to slow down the trendof global warming. The attitude of our government in the World Climatenegotiations is positive and responsible. Chinese government has takenmeasures to reduce the greenhouse gas emissions and carried out theexperimental work of the carbon emissions trading in domestic.This article first explores the conception and primary theory ofCarbon Emission Trading System, and talks about its background to setforth its value of system. Carbon emissions trading system has theadvantage of being able to use the price mechanism to achieve the optimalallocation of environmental resources and promote the reduction subjectto improve the technical level to reduce greenhouse gas emissions so asto achieve the purpose of solving climate change issues. Kyoto Protocolis a legally binding international emission reduction document, theestablishment of flexible Kyoto emission mechanism is the basis of thecarbon emissions trading system. Although Copenhagen Accord and Durbanagreement are not legally binding, they play a major and positive rolein promoting the cooperation of international emission reduction and thedevelopment of carbon emissions trading system. This article makes comparative research on typical representativesof compulsory and voluntary legal system of Carbon Emission Trading——EU and USA respectively and analysis their advantages and disadvantages.As the most influential emission trading system, EU Emission TradingScheme is a good sample of compulsory CET and offerspracticing-experiences to other countries. The government of USA,although hasn’t formed the countrywide system of compulsory CET, has veryeffective voluntary CET, especially the schedule-design of ChicagoExchange which gave useful suggestions to other countries’ CET.Finally, this article analyzes the status and shortage of Chinacarbon emissions trading. Our country is carrying out the experimentalwork of the carbon emissions trading scheme. Both ad-and-disad of EU andUSA can give important inspiration to set up China’s legal system ofCarbon Emission Trading. This article comprehensively and specificallydescribed to learn the advantages of European and American system andabandon its unreasonable. The author gives suggestions about setting upand improving China’s legal system of Carbon Emission Trading in the fouraspects of the legislative principles, the basic legal system, specificsystem design and regulatory mechanisms. The author wishes it isbeneficial to China, and it is also the main purpose of this article.The author uses following research methods, such as literature study,empirical analysis, comparing study and economic analysis. By collectingarticles, getting lately researches and studies, studying the presentarticles, the author has systematical frame of present CET, and makes goodfoundation to further study. On the other side, the author makesresearches on the market setting-up, trading schedule, and typical casesof CET in and out of China which is good to do further researches in future.Furthermore, by comparing EU and USA’s CET, the author set forth usefulsuggestions to China’s setting-up of CET. Based on the profit-and-cost rule, the author uses economic analysis to improve the structure ofChina’s CET.One of the achievements of this thesis is researching the typical CETof EU and USA deeply and in detail. Considering most of the presentresearches pay attention to frame, and any mistakes on details ofdesigning CET will cause high trading cost and make the system inefficient,this article focus on the typical CET of EU and USA, and pays attentionto details. So the author makes detail comparison of EU and USA’s CETin many aspects, such as trading subject, trading object, emission quotadistribution, certification, registration and clearing, while analysistheir different reasons and sum up what we have to learn from thebeneficial experiences of USA and EU’s CET.The aim of research is not to copy other present CET, so the otherachievement of this thesis is to design China’s CET by compound China’scharacteristics and relative EU and USA’s rules of CET. Specific plansare as follows: firstly, enact the CET legally and define the objects ofCET; secondly, establish primary allocation and the total amountcontrolling systems of CET; thirdly, confirm the subject, object, tradingmarket and trading schedule in law to make the system operatively andpractically; finally, concentrate on special process of CET, and issueadministrative and monitoring laws about China’s CET, especially onenvironmental audit as well as legal and effective monitoring of CET.We need to improve the legal situation of CET, and widen itssystematical space to balance the economic development and environmentalprotection in design.