A Study Of Carbon Financal Risks Of Commercial Banks

In order to alleviate the global greenhouse effect intensifying, frequent extreme weather and realize the coordination of economic development environmental protection, the world actively promote low-carbon development, circular economy and carbon finance and other sustainable development strategy. Especially after the signing of the "United Nations Framework Convention on Climate Change" and the "Kyoto Protocol", various countries have joined the ranks of the carbon reduction, and actively develop the carbon finance market, and strive to achieve a win-win situation of economic development and environmental protection. As China must be a big carbon finance market in the world based on its large emissions of greenhouse gas. The commercial banks of China should firmly grasp this opportunity to actively participate in the carbon exchange market in order to carry out the business of carbon finance transactions. At the same time, they should also pay more and high attention to the challenges and risks brought about by the new emerging financial product--carbon finance for correctly discrimination the influence of every carbon finance risk. Only by this, can the commercial banks effectively prevent or avoid the loss brought by carbon risks.Base on a comparative analysis of the way of commercial banks development carbon finance at home and abroad, also combined with our country’s commercial banks’ carbon financial business practice, analyzes the practical significance of the commercial banks to carry out carbon financial business. At the same time, this paper mainly analyzed the causes of commercial banks carbon financial risks, and gave a summary of the types and characteristics of commercial bank carbon financial risks. Based on this, this paper evaluated every risk brought by the carbon finance in the empirical research way to make sure that each risk’s influence degree. This paper also carried out that the commercial banks should have the option to prevent and avoid each risk. In the end, the article put forward major proposals to prevent and reduce the effects of commercial bank carbon financial risks from the Angle of the government and commercial banks.