Chinese Carbon Trading Contract Risk Prevention

Global warming is a hot issue around the world, which has great impact on our lives and the development of economy. In order to prevent global warming, more than120countries joined and signed the Kyoto Protocol. Regarding to the Tokyo Protocol, it sets the fundamental regulations over the greenhouse gases emissions and opens the market of emission trade. With the purpose of setting up the Chinese Emission Market and enacting the related regulations, in Nov2011and in seven cities of China, here came the first trail of construction of Emission Exchange.In this essay, the background and the foundational theories of carbon emission trade, the existing domestic and international regulations of emission trade will be discussed firstly, followed by the definition and the analysis of the contracts involved carbon emission trade. After these, from the view of the contract party from China, the risks related are analyzed one by one in detail and at the same time the resolutions are offered. Then the foundational legal reasons lying in the contract risks of carbon emission business will be explored, about which the resolutions pertaining to the domestic and international legislations will be mentioned.The main purpose of this essay is to minimize the risks forementioned in a long run.The essay starts with the Instruction Part, where the background of this essay, the research method of writing this essay, the construction of this essay are clearly described. It should be noticed that the combination of the knowledge of economics and law brings up some creative ideas.Part1talks about the background and the basic conception of Emission Trade. The essay discusses the5theories of this trade. The international treaties and the domestic regulations are discussed.Part2emphasizes the contract definitions, rules and kinds in carbon emission trade and offers a real contract of carbon emission trade, analyzing three kinds of legal risks of this type of contracts. Part3puts forwards the solutions of the risks above one by one in detail from the view of the contractors under the present legal condition and analyzes the foundational reason of the risks.Part4offers the domestic and international legislation solutions to eliminate the risks from the root.I hope this essay will minimize the contract risks of carbon emission trade in a long run.