Research On The Defects And Countermeasures Of Legal Mechanism Of Carbon Trading Market

Carbon trading is a mechanism that treats greenhouse gas emissions as a license right to be exchanged and traded under a prescribed system.It is a central tool for governments to regulate the total amount of carbon emissions in the region.Since the operation of China’s local carbon trading market,there have been many problems,such as insufficient liquidity,the invalidation of carbon price,and the serious phenomenon of trading tide,the reason why the function of price transmission and price discovery in carbon trading market has not been brought into play is the deficiency of market demand and the high transaction cost caused by the inherent defects of the mechanism.China launched its national carbon trading market in 2021,and under the pressure of the macro goal of carbon neutral at the peak,it is undoubtedly shouldering the higher expectation of activating carbon assets and realizing carbon pricing,the existing problems of local carbon market and new hidden dangers of national carbon market need to be solved and prevented.The first part is to clarify the concept and position of carbon trading market,firstly to confirm the legal attribute of carbon emission right,and then to introduce the basic framework and elements of carbon trading market,the basic framework includes toplevel design,quota management,trade management,supervision and management,and the main elements include trading platform,trading subject,trading variety,trading mode and so on.The second part is the introduction of the development and challenges of carbon trading market,combing the origin,prosperity and stagnation of the international carbon trading market,as well as the current pattern of regional carbon trading market,analyze its future development trend.Then it points out the current situation that the liquidity of China’s carbon trading market is seriously insufficient,the carbon price is not effective,and the trade tide phenomenon is obvious,and points out that China’s carbon trading market will face the liquidity pressure under high expectations,there are systemic risk under the constraint of total quantity target and anti-pressure risk under the competition of carbon pricing right.The third part is the demonstration of the necessity and effectiveness of establishing a carbon trading market,starting with the price discovery function and the price conduction function of the carbon trading market,it is demonstrated that the construction of carbon trading market can reduce transaction cost,boundary right cost and promote institutional change.While climate justice values are deeply rooted in people’s hearts,carbon trading market has institutional legitimacy basis Secondly,through the carbon trading market data,mainly from the EU carbon trading market data and carbon emission reduction data,demonstrate the effectiveness of building a carbon trading market.The fourth part is the exploration of the mechanism defect of carbon trading market.Through the practical evidence of domestic carbon trading data,administrative punishment and judicial cases,the mechanism defect and hidden danger of China’s carbon trading market are discovered,it mainly includes the chronic diseases existing in the local pilot markets,such as the imperfect initial quota distribution mechanism,the single trade variety and the inability of the trade method to activate the liquidity,etc.,as well as the national unified market may exist hidden dangers,such as information disclosure rules are not sound,insufficient punishment,lack of capacity to deal with systemic risks and so on.The fifth part is the analysis of the countermeasures to improve the mechanism of carbon trading market.On the experience of the carbon trading market outside the territory and the local trading market,through the historical test and feasibility analysis,the feasible countermeasures and suggestions are summarized.Drawing lessons from the extraterritorial carbon trading market,especially the US and EU markets,such as the introduction of a paid auction mechanism for initial carbon quotas,an increase in voluntary carbon certified emission reductions,trading varieties such as carbon derivatives,and an over-the-counter trading system such as a supplemental market maker,for other trading markets,especially securities trading market,there are applicable investor stratification system,mandatory information disclosure mechanism,upgrade punishment and punishment measures.