Legal Obstacles And Improvements On Development Of China’s Carbon Emissions Trading

Human pursuit of economic growth and the over-exploitation of natural resources, in particular the extensive use of fossil fuels has created a large amounts of carbon dioxide emissions. However, for many years there was little discussion over whether the environment could afford to bear this continuous, heavy damage, leading to serious environmental pollution and dangerous consequences to mankind. It wasn’t until the 1960 s that economists began to pay attention to the environmental problems caused by economic growth and started to analyze how to take advantage of the market to control environmental pollution. The "Coase Theory" for carbon emissions trading established a theoretical foundation for such environmental controls.In 1997 the carbon emissions trading market was significantly influenced by a legal agreement known as the "Kyoto Protocol." The "Kyoto Protocol" created a carbon emission reduction mechanism with market-oriented features. With the State Party signing "United Nations Framework Convention on Climate Change,"(UNFCCC) and the "Kyoto Protocol”, a large number of countries immediately formed different methods, different types of carbon emissions trading market. Currently, China is ranked as the world’s largest developing country and the world’s largest emitter of greenhouse gases. This relationship is inevitable, however, in comparison with the European carbon emissions trading mechanism, China carbon emissions trading mechanism is late starter.In order to promote carbon emissions trading from 2008 onwards, our country launched a carbon emissions trading market(secondary market), the secondary market is trying to set up a trading platform of transaction-related carbon emissions trade. However, the participation in the carbon emissions trading activity is mainly in the form of a voluntary nature and project-based. It has not implemented in the form of mandatory emission reduction obligations, i.e. Cap & Trade patterns. Now, we have entered the post Kyoto-era, the State party of UNFCCC has not reached a consistent opinion related to the carbon emission reduction targets as well as whether the inclusion of China in the list of countries which bears the carbon emission reduction obligations. In view of this, I believe that the carbon emissions trading mechanism should not only focus on the voluntary nature and project-based in China because there is a lot of instability and passivity; hence, it is the right time to establish a cap-and trade patterns in carbon emissions trading mechanism.This paper aims to point out the legal obstacles in establishing carbon emissions trading market in China. Through learning from the countries whose are mature in developing carbon emissions trade; like: EU Emissions Trading Scheme(EU ETS), the US Regional Greenhouse Gas Initiative(RGGI), it seeks with reference to their past experience, to explore and establish a possible carbon emissions trading market for China. As a result, to bear the requirements of the international commitment about the greenhouse gas reduction obligations in China, as well as, how China can make the greatest contribution in reducing global warming problem.