Research On Developing Carbon Finance By China’s Civil Enterprises

With the development of and the attention obtained by carbon finance in such developed countries in Europe and America, Chinese government has been attaching more and more importance to the development of low-carbon economy and finance. On Nov.25,2009, it also announced that the unit GDP carbon emission will drop by40-50%by2020comparing to that of2005. And this is taken as the binding indicator, and brought into the middle and long term planning for the national economy and social development. Local governments throughout China also implement different pricing of electric power and water against some high-energy consumption enterprises, and adopt tax preferences and loan interest rate preferences policies for low-carbon environmental friendly enterprises. The issuance or implementation of above policies and measures will make environmental cost and energy cost to be more and more internalized in the enterprise. Civil enterprises do not have much advantage in development. And if they are burdening more on environmental cost, they could barely develop. Therefore, it’s better for civil enterprises to actively develop low-carbon finance, prepare enough financial resource for the transformation of enterprises now so as to win better and broader development space than being objectively suppressed in the future.Civil enterprises, which contribute for half of China’s national economy, will play a more and more important role in national economy with the reform of China’s social economic system. And the mission of practicing and developing China’s low-carbon economy and finance will inevitably fall upon the shoulders of civil enterprises, so it becomes particularly important for us to research the development of carbon finance of civil enterprises at present. In China’s enterprises circle, developing carbon finance refers mainly to the development of CDM projects and implementation of carbon assets management, so does it to civil enterprises. Although China’s civil enterprises have achieved great performances and accumulated some experiences on carbon finance development, there still exist so many problems including shortage of fund in CDM projects, unbalanced development, high cost for administrative approval, high risk for the transaction of carbon emission reductions and blank in enterprises’carbon assets management. Therefore, the implementation of CDM projects and management of carbon assets by civil enterprises are researched in this paper through three different methods including comparison analysis, documents and materials and case study. This paper consists of six parts:Chapter Ⅰ, introduction. This chapter mainly introduces the background of topic selection, domestic and abroad researches, structures, research ideas and methods, innovative points and the drawbacks of this paper.Chapter Ⅱ, necessity of developing carbon finance by China’s civil enterprises. This chapter analyzes it from both micro way and macro way. In terms of macro aspect, civil enterprises provide nearly90%of jobs in China, the increase of their turnovers and profits have exceeded that of state-owned and state holding enterprises, and their registration number and amount have maintained a strong increasing momentum. In terms of micro aspect, civil enterprise can not only obtain financial and technical support, enjoy national tax preferences, different pricing preferences on energy, water and electric power, they can also acquire extra benefits and establish a sound social image for their enterprises by developing carbon finance. All in all, it is an inevitable choice for civil enterprises to develop carbon finance.Chapter Ⅲ, status quo and existing problems of developing carbon finance by Chinese civil enterprises. This chapter mainly analyzes from two aspects including the launching of CDM projects and enterprise carbon assets management. Civil enterprises have achieved certain performances in CDM projects. However there still exist such problems as shortage of fund in CDM projects, unbalanced development, high cost for administrative approval, high risk for the transaction of carbon emission reductions and blank in carbon assets management in Chinese enterprises circle. So there is barely any future for that.Chapter Ⅳ, borrowing the experiences of overseas’carbon finance development. In this chapter, the measures adopted by Indian and Korean enterprises and governments on carrying out CDM projects, as well as the measures adopted by British and Japanese enterprises and governments on carbon assets management are mainly introduced, and their experiences are summarized.Chapter Ⅴ, countermeasure and proposition on developing and perfecting Chinese civil enterprises’ carbon finance. As regard to CDM projects, civil enterprises can resolve the fund shortage problem through such methods as CERS mortgage loan, financing leasing and performance guarantee business; solve the unbalanced development by "package" development and "area" overall development; and as for carbon assets management, civil enterprises may start carbon assets management though enhancing industrial exchange, labeling carbon emission signs, compiling greenhouse gases list. In addition, the government should also establish and perfect all aspects of carbon emission transaction system so as to provide guaranty for the carbon finance development of civil enterprises.Chapter Ⅵ, conclusion and prospect. Through the research in this paper, it is believed that civil enterprises will play a more and more important role in the development of national economy. And the mission of developing China’s low-carbon economy and finance will inevitably fall upon the shoulders of civil enterprises. Civil enterprises may solve the existing problems in CDM projects development through such ways as financing leasing, performance guarantee, establishment of carbon fund, developing in a "package" or "overall" method and attendance in the establishment of carbon emission transaction, and consider enterprises’carbon assets management from the strategic angle. It can be foreseen that it is a natural trend for Chinese civil enterprises to develop carbon finance. It’s just a matter of time now.