Spanish Carbon Fund- Tianjin Landfill Gas CDM Project Risk Analysis

Nowadays, Environmental issues have become a major problem of constraining China’s economic development. Carbon finance is a new concept of using financial instruments to manage environmental problems. For our country, the development of carbon finance needs to be strengthened. CDM is the main way of our country participate in international carbon finance market. It’s significant to participate actively CDM projects for the development of carbon finance in our country. In recent years, China has become the largest CDM project host country. Due to the numerous factors, such as domestic and foreign policy, project registration rules and the carbon market, the CDM projects faced many risks in the development of operations. So it should to accurately analyze the overall risk before effectively managing risk of CDM projectThis paper firstly introduces the operating mechanism of CDM project, combing the development status of CDM projects, and from the aspects of the project participants, economic benefits, technological process, emission reduction, social efficiency and project obstacles to describe the Spanish Carbon Fund- Tianjin landfill gas CDM project. Then to analyze the risk of the Spanish Carbon Fund- Tianjin landfill gas CDM project, using the ANP to assess the risk of the project.The result shows Spanish Carbon Fund- landfill gas CDM projects in Tianjin main facing the international policy and domestic policy risk, registration risk, issuance risk, CERs price risk, exchange rate risk, those six risks from big to small are international policy risk, registered risk, domestic policy risk, CERs price risk, issue risk and exchange rate risk; finally, to raise the lacking in the risk prevention and make some appropriate suggestions.