Analysis Of The Factor That Affecting The Price Of Carbon Asset In Our Country

Today, environmental pollution problem become more and more serious, countries are actively coping with the impact of climate change. After the signing of the "Kyoto Protocol", European countries take the lead in trading carbon assets, trying to establish a carbon trading market to enable enterprises to participate in carbon trading, to the goal of reduction emissions. In this context, there was the emergence of carbon assets. Carbon assets refer to past transactions of enterprise or business generated by the project which is recognized by the international or national official agencies, owned or controlled by the enterprise with liquidity and trading properties and can be used to reduce greenhouse gas emissions or emissions credits. This article aims to reveal the factors that affect the price of carbon assets.In 2014 our country has already started seven pilot carbon trading. this paper is based on existing transaction data of each trading pilot, combining with the related policies and regulations, processing some of the data, then using horizontal and vertical analysis, and comparing with the maturity European carbon market. Finally we summarize the factors that affect the price of carbon assets: quota distribution, reduction efforts, CCER project, abatement costs, information openness, performance and degree of punishment. This article also describes the importance of stable carbon asset prices, and provides some suggestions of how to stabilize carbon asset prices, such as adjusting the carbon emissions quotas, establish cross-term storage borrowing mechanism, set up offset credit mechanism to ensure the timely and transparency delivery of information. Finally the conclusion of this paper is that the granted quotes must be combined with actual emissions of enterprise, the more issuing quotas often lead to decline in carbon prices, on the contrary, the less granting quota will lead to skyrocketing price of carbon, the more efforts to reduce emissions of carbon, the more increased of price, on the contrary it will reduce the carbon price. The more carbon offset projects, the lower its effectiveness tends to reduce the carbon price, and vice versa enhance carbon price. The openness of information would affect the stability of the carbon price, carbon prices is fluctuating at the lack of openness in information, which is reflected in trading market.When closing to the compliance period, it will greatly increase in trading volume, and the carbon price will decline. At the same time the greater the degree of punishment, the higher the cost of breaching contract of business, carbon prices will rise, and vice versa companies are more willing to breach contract, not to participate in carbon trading, resulting in carbon prices falling. The study of factors that affect the price of carbon assets can reveal the relationship between supply and demand of carbon assets, facilitate China's carbon trading market supervision and management, to enable enterprises to develop a reasonable reduction plan, optimize the allocation of resources. Grasping these factors that affect the price of carbon assets, which can prevent the risk of price fluctuations, taking preventive measures before they occur, meanwhile to provide a basis of judging for financial institutions when they carry out carbon finance business in the future.