The Carbon Finance System And Analysis Of Its Efifciency

The carbon financial system and analysis of its efficiencyIn the21st century, environmental issues have been great concern around the world.From the1992“United Nations Framework on Climate Change Treaty”, to the1997“Kyoto Protocol”, the2007“Bali roadmap and timetable”, and then to the“Copenhagen conference to explore the specific program of action”， the worldclimate warming environmental issues reach a consensus, moved into the stage intoaction. China is one of the contracting states to the “Kyoto Protocol”, thedevelopment of low-carbon economy is not only as a big country of the KyotoProtocol compliance but also a concrete manifestation of the initiative to assumeresponsibility for climate change. Besides，it is necessary to maintain sustainableeconomic development, and to achieve ways of the extensive type toenvironment-friendly. November25,2009, Premier Wen Jiabao held a State Councilexecutive meeting of the deployment of our response to climate change work,determine the action to China’s unit gross domestic product (GDP), carbon dioxideemissions in2020compared to2005decreased by40%-45%objectives andcorresponding policy arrangements, the development of low-carbon economy hasbecome China’s long-term development of the strategic objectives.To maintain sustainable economic development, develop a green economy andlow carbon economy, carbon finance system must to be built. With an increasinglycompetitive global financial industry, only adhering to give priority to efficiency,taking into account the concept of security, our country could improve the financialindustry’s competitiveness in the international market. As to Carbon financial system,we should take the efficiency of carbon finance into account on the basis of itsstability, security. Therefore, this paper will discuss about efficiency of carbonfinancial system issues.First, this thesis reviews the literature of the theory of financial development andChina’s Carbon Finance Research. Second, we carry on a comprehensive andsystematic research of the carbon financial system, and the carbon financial system is divided into five levels, loan type carbon finance, capital type carbon finance,exchange-traded carbon finance， speculative carbon finance and other types ofcarbon finance. Then, on the basis of different definitions of financial efficiency givenby the Chinese scholars, the paper defines the definition of financial system efficiency.Then, as the model of savings mobilization capacity——the saving-investmentconversion rate——the efficiency of capital allocation, the paper propose carbonfinancial efficiency evaluation index system. Finally, according to the evaluationindex system of the carbon financial efficiency,the thesis analyses the status quo ofChina’s macro-efficiency of the carbon financial system, and gives recommendationsto improve the efficiency of the carbon financial system.The paper concludes that China’s carbon financial system due to a late start, theoverall efficiency is not high. Most low-carbon investments in China are from theindirect financing channels, while direct financing channels are very narrow. Thecarbon allocation efficiency of financial intermediaries in China is low，and China’slow carbon stock allocation efficiency of low-carbon stock market accounted for asmall amount is so low. As a result of the downward trend in the productivity ofChina’s new green credit in recent years and low-carbon stock overall revenue is stilllow, China’s carbon financial capital allocation efficiency is still not high.The proposal of the carbon financial system are as follows：First of all, it issignificant to improve the carbon trading market, strengthen the low-carbondisclosure and reasonable supervision of the transaction and its financial derivativesthrough the legal constraints and policy；Secondly, we must vigorously broadencarbon project financing channels and give full play to the role of securities markets;Last，it is necessary to speed up the construction of low-carbon bank to enhance itslow-carbon level of service.