Strategic Research On Carbon Finance Market Development Based On Clean Development Mechanism

"Kyoto Protocol" gave birth to global trade of greenhouse gas "emissions reductions", and gradually formed a special financial market which makes emission reduction a commodity-carbon finance market; it raised three flexible emission reduction mechanisms. Only one, Clean Development Mechanism, is made for developing countries, the implementation of this mechanism can not only bring much-needed funds for the market, but also the introduction of foreign advanced technology, so in order to study the development of China's carbon finance market and the strategies, it must be based on Clean Development Mechanism.This article makes the Clean Development Mechanism a starting point, through the global carbon finance market and domestic market development analysis, it predicted the potential of our carbon emission market and found many problems in China's carbon financial markets. These problems mainly are in the following aspects:First, there are many problems in Clean Development Mechanism, including uncertain of international policy, unfamiliar with mechanism, restriction of development and lacking of market experience, Secondly, business development in financial institutions lags behind, lacking of operation experience and with no experts; Finally, carbon emissions trading market needs perfection. Compared with international market, we have a long way to go, especially without completed policy.There are some measures, including proposals the development and improvement of the Clean Development Mechanism; we should not only focus on the development on CDM, promote on CDM program, but also seek to international cooperation and change the environment of investment. Meanwhile, we should build a complete carbon finance product system and organized system, which provide a platform for carbon emission trading market system.