The Impact Of International CO₂ Emission Trading On China's Emission Trading

Kyoto protocol which was subscribed by the parties of the United NationsFramework Convention on Climate Change(UNFCCC)in 1997 was put into effect inFeb 16th,2005. This is the huge progress in the history of human environmentprotection. After the Kyoto protocol became effective, the right of carbon dioxide(CO₂) emission becomes tradable commodity. This will has profound effect on thesustainable development, trade and investment of countries in the world. In this article,the author first introduced the origin of CO₂ emission trading, three implementmechanisms of international CO₂ emission trading and the theory of CO₂ emissiontrading-emission trading and its success experience in solving the environmentpollution. Secondly the author analyzes the international CO₂ emission trading marketfrom general situation, supply and demand. Then combined the practice in ourcountry the author analyzes our country's the status quo and future potential in theinternational CO₂ emission trading market especially in the CDM(Clean DevelopmentMechanism) project and believes that China has huge potential in international CO₂emission trading market and also has to face the competition from other developingcountries. Finally the author analyzes profound effects from three aspects whichinclude cumulating the experience of international cooperation, build-up of emissiontrading market and system construction of emission trading, then puts forward that weshould make full use of CDM to promote the construction of emission trading marketand system of emission trading in order to maintain the sustainable development.