Study On The Risk Management Of SPD Bank’s CDM Project

“United Nations Framework Convention on climate change” was issued in 1994, and after that the problem of global warming has obtained the widespread attention. In1997, programmatic document "Kyoto Protocol" clearly stipulated each contracting state greenhouse gas emission reduction targets in a given period of time, and the formulated three emission reduction mechanism to help each to complete the target. The CDM project is one of the three major emission reduction projects, and it is the only one mechanism in which the developing countries participate. As the world’s largest greenhouse gas emissions in developing countries, China’s emission reduction potential is huge. Commercial Banks in our country participate in the CDM projects facing opportunities, and also a unique challenge at the same time.Based on the specific case of Dong Hai Bridge Offshore Wind Farm Project that SPD Bank has participated in, this paper identify and estimate the risks of this project loan, then analyze the SPD Bank’s measures of manage the loan. Finally, this paper summarize the issues in the risk management of SPD Bank’s CDM project loan and put forward specific solutions to these issues.