Research On The Environmental Trust Legal System

The trust system originated from England has achieved great development in thecountries of Anglo-American law system. Because of its amazing role in the financialindustry, it has been transplanted to some civil law countries. The Trust Law of the People’sRepublic of China was considered and adopted in2001, indicating that China has initiallyestablished the trust system. This article is divided into a total of six parts.The first part is an overview of the current situation of China’s Environmental Trust System.The analysis of the current situation of China’s Environmental Trust System is based on thefunctions and advantages of the Environmental Trust. The functions mainly include five,namely environmental protection function, circulation function, accumulation function,preservation function and avoidance function. Then the writer analyzed the advantages andthe current situation.The second part is the analysis of the legal relationship of the Environmental TrustSystem, including the subject, the object and the content of the Environmental Trust. Thesubject includes the client, the trustee, the beneficiary and the supervisor. The object meanssomething related to the rights and obligations that belongs to the subject. The content refersto the sum of the rights and obligations of the subject, including the rights and obligations ofthe client, the rights and obligations of the trustee, the rights and obligations of the beneficiaryas well as the the rights and obligations of the supervisor.The third part is the operational models of the Environmental Trust. It includesinvestment model, financing model, leasing model, joint model, transaction model andtransfer model. Through a specialized Environmental Trust Fund the Environmental TrustInstitutions can maximize the pooled funds of the society and reduce the level of risk toachieve success in capital preservation and appreciation. The leasing model is aimed at thematerials and equipment needed for treatment of pollution. The joint model is mainly targetedfor the production and management of technology grafting cooperation activities. Thetransaction model is mainly aimed at the emission right trade. The transfer model is aimed atmaximizing the use of idle environmental equipment.The fourth part is about how to improve China’s Environmental Trust System. Thelegislation of the special Environmental Trust Law is base upon the concept that theEnvironmental Trust System should have its own legislation. The subject, the rights and obligations of the subject, the source and operation of the capital and the supervision systemshould be clearly defined in the special law.The fifth part is about the outlook for China’s Environmental Trust System, including theindustry trends and the coping strategies. On development trends, the status of environmentaltrust will be rising. The boundaries between Environmental Trust Institutions and otherfinancial institutions will be increasingly blurred. Science and technology network will showin Environmental Trust industry. National process of the Environmental Trust will continue toaccelerate more quickly. The coping strategies include further strengthening the creditconstruction, practicing appropriate regulatory regime, promoting the optimization of theEnvironmental Trust Institutions, strengthening cooperation between the Environmental TrustInstitutions and banking, securities and insurance industries to achieve healthy competition,promoting the international development strategy to enhance the internationalcompetitiveness of China’s Environmental Trust industry.The sixth part is the epilogue. The prosperity and development of the environmental trustindustry still have a long way to go. Also we should be aware that the environmental trustindustry bears great potential and broad space for development. The establishment andimprovement of the legal system is the best way to make the environmental trust industryshine in bright.