The Carbon Trading Mechanism Of China And Its Effect To CO₂ Reduction

With the rapid development of economy in our country,environmental problem caus ed by emissions of greenhouse gases become prominent.Our country's carbon emiss-ions volume has been the world's largest.The world paid more attention on the environ mental problems caused by greenhouse effect.Our country has made important commit-ments to reduce emissions in Paris climate conference.However carbon trading mecha-nism is the important way of controlling greenhouse gas emissions.China will start unified national carbon market in 2017.Firstly,the paper clarified the background of carbon trading mechanism and its con-cept.Through the carbon trading static model to explain its principle which promote emission reduction conservation.Meanwhile build up related enterprise decision makin g model to analyse how carbon market impact the enterprise.Then discussed EU and A merican carbon trading mechanism development experience,and summarize its emissio n reduction achieved.Secon-dly,summarize the quota market and CCER market's recent developments.Specifically discuss the different quota allocation methods,penalties eff ect to the market and the companies.Analysis cumulative transactions,the price fluctua tion,compliance of the pilots.Introduced the development status of the CCER trading m echanisms,citingrelevant cases to illustrates the effectiveness on emissions reduction.Finally,demonstrates the impact of carbon trading on the companies through actual case.Summarized the emissions reduction effectiveness of the pilot areas.Through the study of the existing pilot carbon markets,put forward the existing problems and related recommendations.Currently seven pilot carbon trading system has been in operation for about two years,the mechanisms become mature,but not perfect.Participating enterprise in carbon trading business decision-making process will be described,the results show that participation in carbon trading promoted enterprise turn to low-carbon energy produc-tion.Through the pilot provinces carbon trading market analysis,combined with the principle of carbon trading put forward recommendations for China's development model and the carbon trading mechanism:Make the enterprise carbon emissions clear to ensure reasonable total target;the supervison of the market and inlarge the third-party verification mechanism;the allocation of quotas should be applied baseline method,and add compensation allocation method appropriately;try increasing the futures market,inprove the vitality of the market.The studies above may offer some reference to building our carbon trading mechanism.