China's Carbon Trading System And Its Tax System Design

In recent decades, the issue of global climate change is increasingly becoming the focus of international community. How to control the concentration of greenhouse gases and reduce greenhouse gases emissions are the focus of attention all over the world. Because the greenhouse effect is mainly caused by carbon dioxide, carbon reduction has become a top priority task.In1992, the United Nations Framework Convention on Climate Change was signed by155countries. Since then, international carbon emission reduction framework for cooperation gradually formed. The Kyoto Protocol signed in1997, not only set the mandatory target for developed countries to reduce carbon emissions, but also set practical trading mechanism for carbon trading. Since then, markets in the European Union, the United States, Canada and Australia and other countries have been established, the size and value of carbon trading market continue expanding.During three decades of reform and opening up, China made rapid economic development. At the same time, its carbon emissions gradually soared to the world. Since China is still in the rapid development of industrialization, carbon dioxide emissions will undoubtedly continue to increase. This will bring us not only strong international pressure, but also the conflict with the idea of low-carbon economy and sustainable development. Because it is widely used in developed countries and has achieved significant effects, carbon trading should be the first choice to solve the problem of China’s carbon emission reduction.This article’s main research is China’s carbon trading system and its tax-related system design issues. The main contents are as follows:The first part is the the economic theory basis of carbon trading.The second part is the analysis of the status of the international and local carbon trading market. It also contains the summary of the critical success of mature trading system and inadequacies of the current carbon market of China.The third part specifically designs a carbon trading system from three aspects, the primary market, the secondary market and security system.The fourth part is the design of tax-related system of China’s carbon trading system. It includes the tax planning for parties involved in carbon trading process, such as carbon exchange, carbon trading seller, carbon trading buyer and the third party.The fifth part is the summary of the whole text.