Research On Performance Risk And Prevention Of Companies Participating In Chinese Carbon Market

In recent years, carbon trading market is growing rapidly, type and number of market participants is increasing, the trading volume and turnover of each market climb steadily, transaction prices hit record high, and the prospect of carbon market is excellent. However, the benefits and risks are coexistence, the carbon market is no exception. Carbon market is an emerging market, so there will inevitably be defective for the system itself in design and continuous improvement process. Such as the loopholes of carbon market mechanisms, unfair quota allocation, lagging laws and regulations etc. In addition, because the main body of market participants tend to diversification, the complexity of the market is increasing, and the risk of concomitant carbon market is increasingly prominent. For example, there have been the cases of vat fraud, quotas stolen,and trading system by hackers in the first phase of the EU ETS. Chinese carbon market is in the pilot stage at present, and we will establish a unified national carbon market in 2016. With the further expansion of the size of carbon market, the various stakeholders of carbon market put forward higher requests for the capacity of responding to the carbon market risk. Not only the carbon market itself need to improve continuously and be perfect, but also the enterprises as a major participant of carbon market should be aware of the risks from carbon market, and enhance the capability of risk defense.In view of this, this paper adopts the method of literature review, comparative analysis and empirical analysis, summarize the study and analyze the current status of domestic and international carbon market, especially the situation of the volume and turnover. Introduce the carbon market theory and risk management theory, including the formation of the carbon market, carbon emissions trading, carbon market risk, performance risk, risk management and other related concepts. On this basis, the enterprises are divided into three categories, there are enterprises controlled emission, the intermediaries of serving the carbon market and investors, respectively analyze the characteristics of these enterprises and the influence of enterprises from carbon market, pave the way for the subsequent risk. Analyze peripheral risk of carbon market including political risk and market risk, and compliance risk. In addition to the peripheral market risk, it also includes default risk, operational risk and legal risk. And use AHP to quantify the risk evaluation. Taking Tianjin carbon market as example, research on the basic situation of enterprises, the degree of enterprises’attention to carbon market, the carbon management capacity of enterprises, corporate awareness of risk factors on compliance and business expectations for the future carbon market and other contents. Finally, the countermeasures and suggestions of preventing carbon risk are given respectively from the regulation level of government and the enterprises’ level, including government policy guidance, the carbon market regulation, carbon finance innovation, unified carbon market, risk management mechanisms, internal facilities reform, the level of the awareness of enterprises’ carbon risk raising and business management innovation etc.