Carbon Finance Policy Research

With the Governments emphasis on global warming, Low-carbon economy and reducing greenhouse gas emissions are the unanimous choice in various countries. Low-carbon economy is inseparable from the development of financial policies. In many western countries, the current carbon finance already have a sound system in the laws, institutions, market and market participants, intermediaries, while China is relatively backward a lot in this respect, so to explore ways in order to improve China's carbon finance policy has significance."Kyoto Protocol" provides three flexible mechanisms for developed countries to meet greenhouse gas reduction obligations, namely the Clean Development Mechanism, Joint Implementation, International Emission Trading, resulting two carbon trading market, which are quotas-based maket and project-based market. With the rapid development of carbon markets, the financial trend are more and more evident. Since China does not assume the obligations of reduction of carbon emissions, carbon emissions trading in China is mainly project-based trading. China's "carbon finance" activities are more based on Clean Development Mechanism.The understanding of China's current CDM and carbon finance is yet inadequate, for example the intermediary market imperfections, the scarcity of professional personnel, the missing of transaction system. To improve China's carbon finance the policy, we must improve the carbon finance laws, regulations and other policies to support development of carbon finance, must draw on international experience to build a trading platform, must build China's carbon emissions trading system, must cultivate the intermediary market with great efforts, innovate model of carbon finance business, enhance research in carbon finance policy, have international cooperation in the field.