Study Of The Clean Development Mechanism Under The Relevant Legal Issues

In order to effectively solve the global warming issue, on June 4, 1992, the international community passed "the United Nations Framework Convention on Climate Change" at the United Nations Earth Summit meeting in Rio De Jeneiro, Brazil. On December 11, 1997, the international community again passed the"Kyoto Protocol," which is legally enforceable to the signature countries. Kyoto Protocol set forth mandatory limitations for greenhouse gas emissions to the signatory developed nations and also introdcued Clean Development Mechanism (CDM), Joint Implementation (JI) and Emissions Trading (ET), i.e., the three mechanisms of the Kyoto Protocol.Clean Development Mechanism (CDM) was the only mechanism participated by developing countries. The CDM is an arrangement under the Kyoto Protocol allowing developed countries with a greenhouse gas reduction commitment to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries. The research has been conducted in China regarding the methodology, the potential of reduction emissions, the opportunity and the result of the participartion by China, and its social and economic effect. The CDM adminstrative rules have been enacted. The administrative agency has been founded to enforce the rules. Emissions trading has gained more and more attentions in China.The CDM in Chin is still in its developing stage and in lack of operative laws. Meanwhile, the existing CDM legal system and other laws are still in need of coordination. This paper will discuss the relevant legal issues under the CDM.Part I introduces the background of the CDM and the three mechanisms of the Kyoto Protocol. Part I will summarize the definitions, rules, and functions of the CDM. Part I will further argue that it is necessary to implement the CDM in China through analyzing the current status of energy, climate, economy, and politics in China and it is feasible to implement the CDM in China through comparing the positive and the negative impacts and analyzing obstacles of the implementation.Part II will analyze the legal rules supporting the CDM in China from perspectives of the Constitution, the environmental laws, the energy laws, and the CDM administrative rules.Part III will provide recommendations focusing on how to establish the legal frame work to support the CDM. It will first introduce energy laws, green tax breaks, subsidies that are adopted in developed countries. Then, it points out that in establishing the legal frame work, the following questions will need to be paid attention to: (1) properly handling the relationship between the government and the market; (2) standardizing the procedure and protecting China's interest in the international trade; (3) properly using supporting and incentive mechanisms to help developing the CDM in China; (4) fair trading and preparing for making legal commitment of reducing emissions. Finally, Part III will provide the following recommendations in establishing the legal frame work: (1) economic and environmental sustainable development; (2) ensuring the energy security; (3)properly handling the market mechanism and governmental reactions; (4)ensuring the ultimate environmental and ecological value and stability; and (5) procedural rules and expert advices.