Reflections On The Construction Of China’s Carbon Emissions Futures Market For A Number Of Issues

Global warming has become one of the world’s major environmental problems which are being more and more attention in various countries. Carbon dioxide as a greenhouse gas is the most important part of the root causes of global warming, therefore, to address global warming, the most critical problem is to control carbon dioxide emissions. Since the entry into force of the Kyoto Protocol in2005, the global carbon trading market is the rapid development of quotas and project-based carbon trading market has been gradually formed, the financial attributes of the carbon emissions begin to be felt worldwide carbon emissions credits related to environmental financial derivative products is gradually developed. As a market-oriented means of carbon trading has been proved by the most effective emission reduction methods, and generally a high degree of attention as the global climate, carbon trading market is the rapid rise in recent years, into the ranks of the commodity trading market, and expected to exceed the oil market. Low-carbon technologies has become the network technology, biotechnology, after another major technological revolution, the future economic development and competitiveness of countries and regions, will also be around to begin with economies in transition to a low carbon, that is, who can master the "low-carbon economy "opportunities, and develop standards of low-carbon economy, industrial structure adjustment, will come to grasp the initiative in the development of low-carbon economy.Compared to Anglo-American and other developed countries, however, the awareness of domestic carbon emissions trading is still relatively weak, compared with the mature market of the EU emissions trading system within the EU and the United States, the Chicago Climate Exchange, the development of China’s carbon trading market is still lagging behind. Although China’s domestic establishment of trading the spot market of the multiple carbon projects, CDM projects are mostly carried out by a unilateral project, but the lack of a systematic level of carbon emissions trading platform. Makes Although China is the largest supplier of CERs under the CDM side, but our country has been at the lower end of the international carbon market and carbon value chain position in the CDM project pricing has been at a disadvantage, but had to accept foreign carbon trading institutions set the lower carbon price. The above facts tell us that compete for carbon emissions trading, product pricing, relying on China to occupy a CER market share, the design of the corresponding carbon emissions financial derivative products and the establishment of a national unified carbon trading market platform, create a CER level trading market has become China’s urgent need to address the problem. Successfully build the CER futures market for China’s financial environment conducive to the realization and perfect market trading mechanism for carbon emission reduction CDM projects to spread the risks, while enhancing the bargaining power and status of our country in the international climate cooperation.This article select the "carbon futures market in China to build" the theme of the carbon futures market in China to build a more comprehensive and in-depth analysis and research, theoretical research and empirical methods. The main results of this thesis include:First, To the status and role of China, in the international carbon trading market as a foothold of our country to face the problems of technology and financial transfers in the CDM project, transactions in the CER a market transaction pricing of our project missing, and will face practical problems such as the risk of higher price back to the carbon emission rights, the establishment of the carbon futures market in China is imperative.Second, according to China’s futures market environment and the unique properties of carbon emissions in China to establish the role of the carbon futures market and feasibility analysis. Establish the formation of carbon emissions trading spot price of carbon futures market, the speculative demand for risk-averse and speculators meet hedgers, saving the transaction costs of traders, carbon trading in China to obtain pricing and to guide our green economy sustainable development have a positive impact.Third, establishing the carbon futures market envisaged. Certified emission reductions (CER) in China are now trading under the CDM projects, so we choose the CER as China’s futures trading varieties. CER standards-based futures contract design, drawing on our existing commodity futures contracts and the successful experience of foreign carbon futures market to establish the type of the main body of the carbon in the environment of China’s futures market futures trading, transaction settlement method, the basis of market the construction of market control of the risks of trading, the market trading mechanism to build the carbon futures market in line with China’s national conditions.Fourth, the use of European Climate Exchange CER futures price and spot trading prices, the stationary test, vector error correction model and impulse response method, verify that the carbon futures and spot prices between a long-term equilibrium the relationship between futures market price discovery function, so as to further provide the basis for hedging the risk of circumvention.