The Decision-making Factors Of Clean Development Mechanism Projects And Project Evaluation In China

The global climate change has a serious impact on the sustainable development of human society, the influence of global warming has attracted widespread concern around the world, and the increased global greenhouse gas emissions is the main reason for climate change, this prompt the international community seeking cooperation in controlling greenhouse gas emissions. The Clean Development Mechanism (CDM) is one of the international cooperation, a new energy enterprise in developed countries can get the support of funds and advanced technology from developed countries to reduce emissions of carbon dioxide emissions. With the increasing development of economy in China, oil shortage will be one of the factors that can prevent the economy from developing, and the CDM usually supports natural resources or waste re-utilization of renewable energy projects. Enterprises in China involved in CDM projects, not only get economic benefits but also optimize the industrial structure, ease the pressure of domestic energy in our country,and make contribution to our sustainable development of economy and society.Firstly, the author deeply expounds CDM mechanism from the perspective of international investment and trade theory, to make the relations between CDM and theoretical basis of carbon emissions trading clearly. Then the author introduces current development of China's CDM projects, analyzes the data and finds the distribution of CDM in China is unbalance, but the development of CDM projects is good, and China has a great development potential in the global carbon market. From CDM project owners perspective, this article analyzes the private and social benefits of CDM project, and the barriers in application and implementation process.Then the author take the East 25MW biomass power generation projects and other five CDM projects for example, analyzes the economic and social interests which the project owners can earn, and also through the analysis on the sensitivity of IRR of each project, examines barriers in the process of project implementation. These findings will not only help the China'government formulating policies in improving market mechanisms to stabilize the international carbon price, to protect our business in the international carbon market, but also increase the overall benefits and sustainable development capacity of a project, and promote economic and social sustainable development in our country.