The Influence Of International Carbon Market To China's Related Listed Companies

The effect caused by global warming is becoming more and more serious. The environment pollution and the shortage of energy have become the main factors which influence the global development of economy. On May 22,1992, the UN's Intergovernmental Panel on Climate Change drafted the United Nations Framework Convention on Climate Change(UNFCCC). On December 11,1997, under this joint pledge various signatory states held the conference in Kyoto, Japan, and passed the milestone-like "the Kyoto Protocol", which opened the new time of solving the environment question with the market mechanism."The Kyoto Protocol" stipulated that, as a developing country, China does not need to fulfill the obligation of reduce carbon emission, but China may participate in the global carbon transaction through framework agreement under clean development mechanism (CDM).As the second biggest carbon emissions country in the world (after USA), China has a large potential in reducing carbon emissions. The listed companies in China participate in the international carbon trading market through the CDM mechanism, which benefits a lot in promoting the company's achievement, optimizing company's energy structure, boosting the development of the companies, and introducing international advanced technology of reducing the carbon emissions.This article has provided some beneficial suggestion to further our country's integrating the international carbon trading market as well as the development of low-carbon economy through the analysis of the present situation about the listed companies' participation in the international carbon trading market,the effects caused by CDM project implementation to the company achievement, the service and enterprise competitive power, considering the present situation of the international carbon trading market and the future trend of development.The main research contents of this article are divided into the following four parts:The first part has analyzed the present situation and the future trend of the international carbon trading market. It provides many advisory opinions for China's listed companies on how to participate in the international carbon trading market through the analysis to the development condition of the international carbon trading market in the past several years, and that to the trend of international carbon market after the Copenhagen conference and "the Kyoto Protocol".The second part has analyzed the listed companies'participation in the international carbon trading market. Through the earning condition analysis and the CDM project income analysis of the listed companies in Shenzhen and Shanghai, it also introduces the trading situation of listed companies in the international carbon trading market. It has also carried on a SWOT analysis to the way China's listed companies response to the changes of the international carbon transaction. It has proved the opportunities and challenges for China's listed companies in participating the international carbon trading market.The third part has analyzed the influence of the international carbon market on China's listed companies. The analysis includes its influence on the result, development and strategy of China's listed companies in carbon trading.The fourth part has offered several suggestions for China's listed companies on how to participate in the international carbon trading market.