Research On China's Carbon Finance Development Under Clean Development Mechanism(CDM)

Global environmental change is becoming increasingly serious,greenhouse gas emissions are also rising year by year.Countries around the world attach great importance to the issue of climate change and have taken various measures to handle it.As a country ranked first in the world in carbon emissions,China must be active in reducing emissions.And developing the low-carbon economy is an inevitable choice for China.A higher target is set in the China's 13th Five-Year Plan:reduce energy consumption per unit of GDP by 15%,cut CO2 emissions per unit of GDP by 18%.The development of a low-carbon economy is inseparable from the support of the carbon finance system.The Clean Development Mechanism(CDM)has played an important role as a principal emission reduction mechanism in international carbon finance market.China makes efforts to develop the CDM projects.With some developed counties' policies and systems are changing,many problems expose in the development of this project.China's carbon finance market is facing two basic missions:First,improve carbon emissions trading system(CETS)and finance market,coordinate national CETS to other seven pilot markets.Second,gradually enhance the position of carbon emissions trading system,so that the carbon emissions trading system can play a transparent and orderly role in guiding the energy-saving emission reduction and low-carbon investment by the carbon price signal.The purpose of this paper is to provide the theoretical support for the carbon resources to optimize the allocation of resources and to fulfill the emission reduction targets.This paper summarize the carbon finance literature including domestic literature and foreign,analyze the basic concepts and principles of the market.Based on China's CDM project,seven provinces and cities carbon trading pilot,illustrate the development of China's carbon finance market and conclude that there are many problems in China's carbon financial market.Insufficient demand for carbon emissions,financial institutions are not active to participate in,and the lack of a unified carbon trading platform.Then,predict the trend of Chinese carbon financial market prospects.Finally,based on the above research,in order to promote the stable and healthy development of China's carbon finance market,the policy and recommendations put forward as follows:increase the demand of CER and CCER projects,actively promote the participation of the carbon finance market,mainly to improve the bank,securities,insurance and other financial institutions as well as the third party--monitoring agencies,timely establish of a national carbon trading system.