Comparative Study Of EU And U.S. Carbon Trade Market Supervision And Inspiration

In the1980s and1990s, the trend of global warming has become increasingly evident.The main reason accounting for the phenomenon is emission of carbon dioxide and othergreenhouse gases. To slow down the trend of global warming, the United Nations FrameworkConvention on Climate was adopted after several rounds of discussions in the UnitedNations General Assembly in1995, and as one of the most important rules for theimplementation of this Declaration, the Kyoto Protocol explicitly provides for theConvention Appendix the indicators of total carbon emission of every country. In orderto achieve the targets of emission reduction, carbon trade market came into being.Currently China is not to assume the task of carbon reduction, but as the most importantsupplier of carbon emission reduction quota, it plays a significant role in carbon trademarket to contribute seventy percent of the quota.The carbon trade market was established according to the regulations; in thismarket, people do transactions by the use and circulation of carbon emission quota. Unlikephysical goods, the quota of carbon emissions is not tangible, which leads to thedifficulty of the supervision of this market, and from the very beginning, this man-mademarket has many defects which become increasingly evident in the process of itsdevelopment. With constant occurrence of carbon trade scandal in the market, it has becomean international consensus to strengthen the supervision of the market. European Unionand the United States have formed their special modes of carbon trade supervision systembased on the development of their national carbon markets. China has not establisheda sound carbon trade system, but the domestic carbon trade market is developing quitequickly. Therefore, it has become a top priority to learn from other nations to regulate the carbon trade market and thus to reduce and prevent risks.The thesis consists of three chapters. Chapter I first talks about the developmenthistory and current situation of the carbon trade market; then clarifies the conceptof carbon trade market and the three compliance mechanisms of the Protocol; later thechapter concludes the necessity to strengthen the supervision of the market by analyzingsome typical cases; finally the chapter touches upon the supervision modes of carbontrade market of European Union and the United States. Chapter II first makes a respectivestudy of development history and current situation of the EU and U.S. carbon trade market;then offers a detailed analysis of relevant law and regulatory mechanisms; and finallymakes a comparative study of advantages and disadvantages of the two modes. Chapter IIIbegins with the development history and current situation of China’s carbon trade marketsupervision; then sums up the internal and external factors for the development of Chinacarbon trade regulatory mechanisms; at last the chapter comes up with a proposal toestablish a sound supervision system based on EU and U.S. successful supervisionexperience of carbon trade market.To sum up, China’s carbon trade market aims not only at being big but strong aswell, which makes it imperative to improve the regulatory mechanism; and only by learningthe positive experience from other countries and absorb the experience into the specialsituation of China can we nurture a long-term stable development.