Study On The Construction Of Carbon Emissions Trading Market In China

With the rapid development of the global economy and community, a series of environmental problems are being triggered. One of which is global warming caused by leap in greenhouse gas emissions, which is also highly disputed by people all over the world."United Nations Framework Convention on Climate Change" was passed at the United Nations Environment and Development Conference in1990s, which had provided the basic framework of international cooperation in the fight against global climate change for the international community. The "Kyoto Protocol" adopted in1997defined all country’s greenhouse gas emissions reduction standards and designed three flexible mechanisms to help developed countries to fulfill the emission reduction task:Emissions Trading (ET), the Clean Development Mechanism (CDM) and Joint Implementation (JI). Since then, a new market was appeared in the world, which is the carbon emissions trading market. As the largest developing country, China has been incorporated into the non-Annex I countries, so it does not need to undertake mandatory emission reduction task, but as the largest greenhouse gas emissions country, we must recognize the fact that we will be inevitably brought into the mandatory emission reduction plan in the future, so our country has participated into the international market oy Clean Development Mechanism and explored domestic carbon emissions by domestic carbon exchange. However, during the process of exploration, the problems are appeared both in CDM projects and domestic carbon exchange, which seriously restrict the development of carbon emissions market in China.In order to solve the problems that includes unclear transaction subjects, the lack of transaction price mechanism and so on, and to achieve the target of emission reduction through market-based instruments. This article analyzes the two types international trading markets, and summaries the successful experience of which, then using property rights theory and transaction cost theory of the institutional economics, it proposes the mode which guides the construction of the carbon emissions trading market in China, the first mode is regional cooperation, the second mode is the combination of quota market and project market, the third mode is that the carbon exchange business not only combines with international standards, but also has be with chinese characteristics. At last, it puts forward policy recommendations to ensure the running of carbon emissions trading market effectively in China, which are converting of the emission reduction targets quickly, establishing a sound legal system, building human resources increasingly and guiding the finance to participate in.