The Research Of CDM Projects To Enhance Profitability Strategy

Clean Development Mechanism (CDM) is mainly established to cope with the effects of global climate change, which has developed rapidly in China from2005, and the number of annual emission reductions of CDM projects in China ranks first in the world. However, as the largest supplier of Certified Emissions Reductions (CERS) on the market, it has achieved far from being matched profits. So far in China, although there are related policies, which foster some Exchanges, most of which are scale small and trading volume little, and has no pricing right in the international carbon trading market. The NM’s WD project under the SH Group is a typical example, because of the low price of CERS, it lost the CDM project’s half of the profits. This phenomenon is widespread in China’s CDM projects, and I write this paper and hope to take WD project for instance, based on the analysis of the phenomenon’s causes, to address the problem one by one, and put forward a package of implementation of the program.Through the use of case study, comparative research method, and literature data, I analyze the current international and domestic carbon finance market. Among them, the paper takes WD project as a case to be a specific analysis; uses of the comparative study pointed out that China’s CDM projects in the gap between the profit and real profits; eventually put forward a whole strategy through the use of related investment management knowledge for profitability to enhance the program.The paper first reviews the generation of the CDM, the formation of international financial markets, and domestic market development. Then, in the case of WD project specific analysis of their current situation, existing problems and the profitability of room for improvement. And then I proposed a specific strategy to enhance the earnings ability of the program. Moreover, this paper elaborates the implementation of relevant programs, the implementation of the problems in the process, and the related expounded. Finally, I bring forward some recommendations for further research.According to the paper, I consider that it should focus on the establishment of specialized R&D team and sales team of CDM projects, take CERS generated by CDM projects into the international carbon finance secondary market, through the operation of the Company’s (NM company) CDM projects to operate Group (SH group) the CERS business, and then become a carbon fund company in the domestic same industry, and ultimately strive to enter the international financial markets to improve the profitability of the domestic CDM projects. The key to enhance the profitability is to be able to understand the rules and dynamics of the CDM market, strive for a bargain right to speak. Of course, If the carbon fund company has been developing smoothly, one step closer to study the CERS subject of financial and derivative products, to obtain a reasonable return on the premise, the fight for the excess returns. Therefore, the relevant domestic Energy Group with strong financial strength can also use this paper for reference, to carry out its new profit growth point.