Carbon Principles Of Financial Transactions And Derivative Products

The sixteenth session of United Nations Framework Convention on Climate Change, "Cancun Conference on Climate Change " was closed in Mexico on December 11, more than ten thousand delegates from 190 countries and regions attended it for the competition of carbon emissions.Although they didn't reach an final protocol on the carbon reduction target during the second commitment period, it caused the great development of carbon financial. Especially in recent five years, creative business including the CDM projects, carbon funds, carbon business in commercial banks, spot and future exchange on carbon credit,etc. produced various carbon productions. On this context, the principles of carbon finance and their derivatives attracted more and more attention. In this paper first I deeply analyzed the economic principle of carbon finance, the mode and instructions of carbon exchange, the initial distribution of carbon credit, carbon derivative products, and the platform on which these factors worked, then we summarized the present situation of carbon finance on both domestic and foreign markets, and recognized that carbon market in our country lagged behind the developed ones. Besides we pointed out the economic technical and politic puzzles confronted. Finally, on the basis of deeply comparing the both, the paper listed some reasonable measures to improve our carbon market, for example, improving carbon trading system;encouraging the financial sector to participate in the business; promoting suitable ways of carbon reduction practice in our country.