The Initial Allocation Mechanism Of The EU Carbon Emissions Quota

Reduce carbon emissions has become a global consensus. Through the "Kyotoprotocol" in1997, which is an important sign of global expand cooperation onclimate issues start, the EU plays an active role in leading the entire reduction process.In the year of2005,it is by far the largest in the world, the only cross-border,cross-sectoral carbon emissions trading system. Forming the world’s largest carbonemissions trading market, has been a reference for many economies, it shows thefeasibility of providing a very strong reference to the global emission reduction,Whether area or global emissions reduction scheme, EU ETS design the program areahave important reference value, is the main reference model. But it is still in theexploration stage of development, The initial allocation of quotas for carbonemissions is critical part, It is related to the standard of a country’s economicdevelopment and social welfare, also related to the fairness and feasibility of thesystem, is the survival and development of the EU ETS is crucial, Strengthen the EU’scarbon emissions trading system research study, Summary the found carbonemissions quota allocation method is suitable for China’s national conditions, and theestablishment of China’s carbon emissions trading market is significant..This article researches on the emergence and development of the EU carbonemission trading system, the quota allocation principles and methods in the MemberStates and between the various sectors. Study the grandfather method distributionprinciples and standards law principles. Learning the free allocation of quotaallocation, distribution and full auction allocation, proposed the advantages anddisadvantages of this two allocation method. Free allocation will make more and more enterprises into the system, complete auction is the most efficient way, but itfaces many difficulties; mixed distribution way is a way of transition, can better adaptto the carbon trading system by the enterprises, in order to realize efficientdistribution of auction to lay a solid foundation.However, China has yet to establish a sound carbon trading market, even rigidemissions cap index is not set up, but also in industries and enterprises rely onconscious reduction stage. So China should improve relevant laws and regulations,mandatory emission reduction tasks required to achieve the scarcity of carbonemissions, the use of market mechanisms to effectively achieve the optimal allocationof carbon emission quotas. This paper studies the EU ETS in expanding coverage anddistribution of the initial allocation methods constantly improved path and scientificbasis for the selection object, design the suitable for China’s national conditions ofinitial allocation of carbon emissions quotas. According to status quo of developmentof carbon trading market in China, puts forward relevant policy Suggestions.