Study On The Mechanism And Mode Of International Carbon Transaction Finance

In recent years, based on international carbon transaction market, international carbon finance market developed quickly, but because of its short existence, it is still at a low level. From the core conditions, macroeconomic conditions and micro conditions, we can evaluate that the international carbon finance market has low efficiency. Currently, the characteristics of separation, lack-of-competition and unbalanced development in international carbon finance market trend more notable, countries also carried out intense carbon game based on sovereign interests, combined with the impact of financial risk and transaction cost barriers. All these factors together make the international carbon finance market inefficient."Kyoto Protocol" provided stable base mechanism for international carbon finance, but the supply of capital is still the focus of debate in international negotiations. Currently, the capital for carbon finance are mainly supplied by their own government, financial institutions and enterprises. In addition to this, international capital flows into a country through carbon funds and projects cooperation. In the context of the lack of capital supply, innovation in financial products has become a necessary tool. Based on the principle of liquidity, safety, profitability, many countries designed a variety of basic carbon products and derivative products and then priced them for their carbon finance. In the international carbon finance market, the market players will usually use carbon derivatives and interest rate derivatives to manage risks of carbon prices movements and interest rate fluctuations.There are various financing modes in the current carbon market, such as basic patterns of carbon credits, carbon funds, carbon sinks and innovative models of carbon stocks, environmental bonds and lottery tickets, they facilitate the rapid development of carbon finance market.Through SWOT analysis, we can know that China has advantages of great potential for carbon emission reductions and high CERs productivity. But there are also disadvantages of financial institutions'light involvement, a lack of professional persons and institutions. What's more, there exist policy risks and the threat of competitions from other countries. However, the rapid development of the carbon market has provided us with excellent opportunities. Although there is a big gap between China and other developed countries in aspects of relevant infrastructure and supporting systems, the market level of activity, financial innovation, we still can seize the opportunity to improve the relevant policy support and regulatory systems, strengthen financial organization system, participate in international cooperation actively and fight for the pricing right in international carbon transaction market, speed up the establishment of China's carbon transaction market and carbon finance market, promote the low-carbon economy, and ultimately achieve sustainable development of economy and environment.