China’s Carbon Finance Basic Operating Mechanism

In past centuries by the British Industrial Revolution, science and technology areadvancing by leaps and bounds, the wealth created by mankind than the sum of all thetimes in the past the world’s wealth. Technology has greatly changed the way of lifeof the people, to bring an unprecedented level of convenience. But at the same time,the process of rapid expansion of science and technology support industrial emissionsof various pollutants and too much carbon dioxide, poses a serious environmentalproblem, water pollution, air pollution, land pollution, ecological degradation, climateanomalies, the global warming, and so on. Which last for a period of time the world’smost talked about climate change, global warming is.Based on the common desire to emission reduction, many countries of the worldto unite in the call of the United Nations, the United Nations Convention on ClimateChange concluded through negotiations, followed by the signing of the KyotoProtocol, many countries are borne by a certain percentage of emission reductionobligations, the limit of the total carbon emissions makes carbon dioxide emissionscarbon emission rights (hereinafter referred to) become a scarce resource, and thengave birth to a carbon emissions trading, carbon trading market. China is an activeparticipant of the carbon emission reduction activities, and does not undertakeemission reduction obligations stipulated in the Kyoto Protocol emission reductionstage, but still raised carbon dioxide emissions per unit of gross domestic product(GDP) in2020compared to2005decreased40%-45%of the emission reductiontargets. At present, China to participate in international carbon trading market mainlythrough the CDM (Clean Development Mechanism) project, China is still notestablished their own carbon emissions trading system, and therefore does not participate in the international carbon emissions trading market. China has becomethe world’s largest national carbon emissions, although no emission reductionobligations, but the pressure of the late emission reduction obligations will increase,China’s most likely from CERs (Certified Emission Reductions, certified emissionreductions, the CERs), net exporter to a net importer, it may even become thebottleneck of China’s economic development. China must prepare to join theinternational carbon trading market, to join the international market premise that wemust establish their own carbon trading market, otherwise one is the lack ofexperience of running carbon trading market, the second is not the basis of the carbontrading market mechanism Third disadvantaged in the competition in the internationalcarbon. Therefore, the country must first establish a domestic carbon trading market,improve the market mechanism, the accumulation of carbon finance experience, thenhave to join the international market, capital and emboldened.In order to create a market, there must be a sound basis for mechanisms tosupport the run. The basis of carbon finance mechanisms include: laws andregulations, the total control mechanisms, quotas determine the mechanism, tradingmechanism, the pricing mechanism, the regulatory mechanism and punishmentmechanism, flexible adjustment mechanism. Analyzed in detail the content of thebasic mechanisms of carbon finance, focuses on world carbon emissions tradingmarket operation mechanism of carbon trading pilot analysis of the problems ofestablishing carbon financial markets Finally, our building carbon finance the basis ofthe market mechanism.