EU Carbon Finance Markets Analysis And References For China

GHG emission issue is more and more a g lobal concern with frequently changed weather globally. European Union take the first to active in carbon emission reduction. EU built a sophisticated carbon emission trading scheme and carbon finance markets. After several years’operation, EU adjusted the scheme and tried to improve it continually. The operation result showed a big success, which is a benchmark dealing with environment issue using market mechanism after USA’s SO2 emission trading market in the world.This paper focused on the analysis of EU carbon finance markets, especially EU ETS’s operation, development and prospect. I analyze the experiences of EU ETS and give a deep analysis of carbon markets, then give a summary and comments of carbon finance markets and products. These experiences and references which are driven from EU ETS are useful for giving advice for China to build carbon finance markets and guiding the development direction.