International Carbon Transaction: Financing Mechanism And Mode Analysis

With the development of society and economy,greenhouse gas like carbon dioxide emission is huge,in order to solve climate warming problem,international carbon transaction grow rapidly.The development of international carbon transaction also promotes the development of financing market for international carbon transaction.Up to now,because the development of financing market for international carbon transaction just grow several years,it still in its initial stage.The developing mode is not fully functional.The developing mechanism is not mature.The developing pace is yet high enough.Besides all the objective factors as I mentioned above,the game for rights and benefits between different countries as well as the infection and risk of the financial market will become important factors limiting the international carbon transaction.As the basic standard of international trade financing,“Kyoto Protocol”,provides guidance to the international carbon transaction.But it does not clearly regulate the mechanism on capital inflows and outflow.Therefore,capital supply problems become the focus of national economic negotiations.At current stage,most of fund for the international carbon transaction financing is from the state government,financial organizations and private enterprises,in addition to international capital cooperation funds.In the case of lack of funds,how to innovate the financing mechanism and mode is the key to promote the development of economy.The main purpose of this paper is to analyze the financing mechanism and mode of international carbon transaction,and then analyze the current situation of China's carbon transaction financing market,and finally put forward some suggestions on the current status of carbon transaction financing market in China.At the beginning,this paper introduces the international carbon transaction market in the financing mechanism and mode,such as the three kinds of financing mechanism: emissions trading,joint implementation mechanism and the clean development mechanism.And three mode: carbon fund,carbon derivatization,carbon credit model.Then the paper goes through the SWOT analysis method analysising current situation of carbon transaction in China.More specifically,carbon resources in China are quite abundant,but the development of carbon transaction is still in initial stage.Infrastructure is not complete.Related Policy is not well-established.Market participation is still low and lack of professionals.Under such a big disadvantage,in order to promote rapid and healthy development of China's carbon transaction market,we need to keep learning the advanced experience from the developed countries to improve our country's relevant laws,regulations and infrastructure construction and actively participate in international carbon transaction and financial activities to strive for the pricing initiative,promoting the establishment of China's carbon transaction and carbon transaction financing market.