The Improvement Of Carbon Market System In China

How to improve China's carbon emissions trading market system? The answer to this question in China has great practical significance. China has not yet formed a unified carbon emissions trading market, but simply rely on participating in CDM projects related to international trade. There are many drawbacks, which will affect China's vital interests, so that we should try to establish and improve our carbon emissions trading market system. Carbon trading abroad carried out early providing a reference for us, but their carbon emissions trading markets or planned programs are different because of political, economic, cultural and other reasons and there are relative problems. They provide experience for us, while also raise the problem of selective absorption. A clear understanding of carbon emissions trading market's internal logic can help us to learn operation experience for China's carbon emissions trading market system and provide specific and feasible countermeasures.Based on the above ideas, this paper is divided into four parts. Firstly, from angles of carbon emissions trading market system's influence on economy and transactions operating mechanism, I review some literature; Subsequently, this paper compares the European and American emissions trading systems to analysis the pros and cons; Then, China's carbon emissions trading practice should be summarized; In the end, for the improvement of our carbon emissions trading market system, we should combine the experience of developed countries with China's reality.Learning from the experience of developed countries, EU ETS and the U.S. Acid Rain Program, the Chicago Climate Exchange and other related emissions trading market systems are compared and analyzed, from the points of market breadth, market players and trading rules (such as the transaction object, the initial quota allocation, commitment period span, borrowing and storage quotas, monitoring and punishment system). I sum up the similarities and differences of each system and provide details on varieties of each mechanism, such as the system's advantages and disadvantages, so that we can have references for our carbon emissions trading market system.While the domestic practice has been carried out, including the development of CDM projects, the establishment of environmental exchange and so on. This paper will analysis the status and problems of our current market system and focus on the problems like market segmentation, less market players to participate, the price mechanism missing to explore inherent of the carbon emissions trading. The ultimate goal is to identify how to build and take what kind of rules to better develop our own carbon emissions trading market system.In the end how to improve our own carbon emissions trading market system, we need to learn from the experience of developed countries in Europe and America and also our practice. Firstly, I sum up the practice of carbon trading in Europe and America to analysis what is good and universally applicable. Then combine these experiences with our country's technological level, energy using patterns, management, economic impact and other aspects of reality. In the end I propose recommendations. Establishing a unified national market, cultivating corporate and financial institutions and other emission reduction market players, improving the trading mechanism, improving the regulatory and legal aspects of supporting policies will be four key points to improve our carbon emissions trading market system.