Research On The Way Of Establishing And Improving The Carbon Finance Market In China

Fog and haze, PM2.5, Air Quality Index (AQI), these once unfamiliar words are gradually familiar to the public. During this year’s sessions, the continuous haze days of Beijing draw the delegates’attentions again on the ecological and environmental problems, which is also the cost of China’s extensive economic development mode. It has become the global consensus to develop low-carbon economy and reduce carbon dioxide emissions. International financial institutions, banks, hedge funds and private equity funds are involved in the field of low carbon economy, which results to the development of carbon financial market. With the establishment of the carbon trading platform, a variety of financial intermediary service institutions have set up to provide related services in the carbon emissions trading. With the first phase of the "Kyoto Protocol" expiring in2012and the second phase arriving in2013, as well as Canada, New Zealand and other "umbrella group" announcing their retirement from the second commitment period of "Kyoto protocol", makes the development of global carbon financial market face greater uncertainty. As one of the parties of the "Kyoto protocol" second commitment period, as well as one of the world’s largest suppliers of carbon resources, how will China realize the promised target that the carbon dioxide emissions per unit of GDP in2020declines40%-45%compared with2005, and how to gain more speaking rights and pricing rights in the international carbon finance market, these are problems that we need to address and think about.Our carbon financial market has a weak foundation, carbon trading system, policies and regulatory system are all not perfect, which will hamper the further development of the carbon financial market. In view of this. This paper adopts comparative analysis, qualitative and quantitative analysis to explore the developing status and the deficiencies of Chinese carbon financial market, and tentatively proposes the overall framework to build our own trading system of carbon financial market in these aspects such as the total amount control, quota allocation system, MRV system, trading mechanism, flexible performance mechanism and pricing mechanism. Finally, this paper puts forward related suggestions aiming at the existing problems in the development of carbon financial market in China.