Research On The Legal Supervision Of Carbon Trading

Carbon emissions trading is emerging as an outcome of global warming. It has being proved as a useful tool combining legal and economic methods to solve environmental problem.Through the intervention by both market and government, a reasonable allocation of resource could be completed. There is no compulsory obligation stipulated in our law to conduct emission reduction, but there is an urgent need to have one as rapid increase of carbon emissions. Thus, we should establish a comprehensive trading system for carbon emission transaction to control the volume of carbon emission and prevent the continuous deterioration of our environment. The legislation related to the carbon trading is far from perfection. Much more work should be done to internationalize our trading system, such as standardization of market rules, enaction of more statutes related to this field. The author considers analyzing and researching the legal regulation mechanism of carbon emission. During this process, some successful experiences of other countries could also be analyzed. Upon on the former studies, suggestions to perfect our regulatory mechanism could be given to encourage more carbon trading in both domestic and international market.This article is divided into three parts:introduction, main body and conclusion.In the introduction, the author will show the background and significance of the topic selection. The deterioration of environment calls for the completion of legislation as soon as possible. Then the author will state the overall logic and research method used in this article. Finally, the creative thoughts will be point out by the author.The main body is divided into four parts:The first part will give a brief to the basic theory of carbon trading. It will explain the concept of carbon trading and carbon trading market. The different categories of carbon trading also will be illustrated. Furthermore, this article will prove the significance of regulations on carbon trading by explaining the basic legal principle and legal relationship of carbon trading.The second part will state the necessity of regulation on carbon trading. It will explain the concept, the necessity and the significance of regulatory mechanism for carbon trading.The third part will point out some problems existing in the trading process. The first one is the imperfection of legislation; the second one is the lack of regulation; the third one is the unfamiliarity of both government and financial institutions; the forth one is the immaturity of intermediary agent; the fifth is the huge risk of carbon trading.The forth part will offer some suggestions in order to solve these problems. The first one is to establish a fundamental legal system of carbon trading; the second one is to enact more specific statute in compliance with the guidance of the fundamental law, for example, initial distribution system, the information disclosure requirement, the regulations of agency and the development and attraction of talents. The third one is to establish a comprehensive regulatory mechanism, which is participated by the government, the trading institutions and the whole society. The forth one is to establish an overall, multi-level carbon trading system to satisfy the market need. The final one is to complete a risk prevention mechanism to realize the minimization of risk during the carbon trading.In the conclusion, it will summarize the basic content and the study achievement of this article.