Commercial Banks And Carbon Financial System

As everyone knows,environmental issues,especially Global Warming has become one of the most difficult problems that we have to deal with in the 21st Century or in an even longer period of time.Since countries around the globe hasfully realized the urgency and seriousness of such problems,and they have started tocooperate widely in this field,and Low Carbon Economy has obviously becomewhat the world is aiming for in the future.The Low Carbon Economy cannot be fostered and developed without theTrinity Support Frame of Policy,Technology and Capital,and Finance is the keypoint of all.Financial means are relied on to facilitate the fund flow and technology renovation.The obligations of 38 industrialized countries under emission-limitation policy are raised with the establishment of Kyoto Protocol,and also with the effect of Three-Market Cooperative Mechanism,the world's Carbon Trade is growing rapidly.Moreover,financial services and products that are derived from Carbon Trade are introduced constantly to the market.Without any doubt,that the fast development in Carbon Finance has attracted more and more attention from the world,and it is even considered as to influence the international financial system lately.Nowadays,China is the largest developing country indeed,and our Greenhouse Gas Emission forms 1/3 of the entire world's,which is just after the United States of America,therefore,the opportunities of carbon trade and its derivatives are enormous to us.After 30 years of revolution,our economic system has finally begun to take shape,and it can commendably accomplish the needs of the growth of our economic develop.However,as a brand new academic area,the Low Carbon Finance is distinctly different from the traditional ones.Unfortunately,our existing financial system is hard to accommodate or even has stunted the growth of Low Carbon Economy.Therefore,a completed,fully functional and effective Low Carbon Financial System is especially important to the implementation of sustainable development strategy.The Europe Union,have achieved certain results on the construction of Carbon Financial System,large Carbon Trade Centers are built up one by one and commercial banks,group companies,fund institutions are joining the stream one after another,and various carbon financial investments and derivatives are created ceaselessly,which laid a solid foundation for the further development in Carbon Financial System.Although,China has also realized the importance of Carbon Finance,and in recent years we have built an amount of Carbon Trade Centers in Beijing,Shanghai.Tianin and Chongqing etc,a series of obstacles,for instance,the singleness of function of Carbon Trade Centers,the low degree of participation of financial institutions,deficiency of carbon financial products and lack of carbon financial technicians and policies,that constrain our Carbon Finance development.In the year of 1993,Professor Z.Bodie and R.Merton in the Sloan Management School of the USA,proposed Functional Finance Theory which has been widely used in finance research on economic growth.Under the guideline of this theory and combine the characteristics and the developing direction,this article illustrates the Construction of Chinese Carbon Financial System from perspectives of carbon financial market system,organization system,product system and policy system.In order to construct a complete,fully functional and effective Carbon Financial System,we firstly need to re-unite existing Carbon Trade Centers or Environmental Trade Centers to large,uniformed and international Carbon Trade Centers;and beyond the commodity trade,we also need to introduce Carbon Future Trade,Carbon Swop Trade and its derivatives etc.;secondly,by advancing RMB internationalization to break the counter balance of USD and EUR etc.and make RMB the major currency in Carbon Trade;Thirdly,by employing and perfecting our existing securities markets to attract more social capital for the carbon project financing in the construction of Carbon Secondary Market and the improvement of liquidity of Capital;lastly,accelerate the product research and development,to create more new carbon financial products such as carbon fund financing CERs,financial leasing,factoring,carbon bank guarantee,carbon trade insurance,carbon asset securitization,carbon futures/options and etc,to enrich the functions of Carbon Financial System,to promote our Carbon Finance development and finally upgrading our status in international financial system.