Study On Carbon Finance Development-based On The Background Of Low Carbon Economy

Since China’s reform and opening up, China’s economy has grown rapidly andgross domestic product (GDP) has rose rapidly，at the same time, Carbon dioxide, sulfurdioxide, nitrogen oxides and other greenhouse gases increased year by year, resulting inthe deterioration of the climate and breaking the balance of the ecosystem, whichdirectly affects the survival and development of mankind. This requires us to change theextensive growth mode for the use of new technologies and mechanisms of growth, andtake a low-carbon path to achieve sustainable development. Understanding of carbonfinance in China is still in the theoretical stage, so the development of carbon financeneed our common efforts. Due to the lack of a unified trading platform, trading system,compensation mechanisms and innovative financial products, China’s sustainablefinancial industry is facing severe challenges. Therefore, development of low carboneconomy and carbon finance in our country has a strong theoretical and practicalsignificance, which is an urgent need for China to accelerate the development of carbonfinance, for the right to speak in the global carbon finance markets, and thus gain a firmfoothold in the international market.Based on the above background, this paper adopts literature analysis, theory andthe practice of cross-validated methods, normative analysis and empirical analysismethods. On the premise of reference literature and website information: First of all, thepaper analyzes the low carbon economy, carbon finance and the financial system fromthe theoretical point of view, this laid a theoretical foundation for later study. Secondly,the paper describes the development of carbon finance in China, development problemsand the necessity of the development of carbon finance, which found major problems inthe development of carbon finance focused on pricing, trading, institutions, productsand policies,specifically in carbon transaction price is low, yet to establish a unifiedcarbon trading platform, carbon financial service system has not been perfect, the lack of carbon financial products innovation and policy support is not strong and so on.Thirdly, the paper establish regression model for empirical analysis on China’seconomic scale and carbon finance, the sample indicators is per capita GDP and percapita carbon dioxide emissions. the regression results found that per capita GDP andper capita carbon emissions of time series data are no unit root, is a stationary series,there is a co-integration relationship between them, and per capita GDP has a significantimpact on per capita CO2emissions, per capita CO2emissions as the growth of the GDPper capita growth, therefore, the size of China’s economy and carbon finance is alsoshowing increasing relationship.Since our country undertake the task to reduceemissions, the emissions of CO2has decreased significantly. Finally, the innovativeproposals is to master the pricing of carbon trading, establish a unified carbon tradingplatform, improve the carbon financial service system of organization, strengthen thegovernment’s support and raise the voice in the international market.