Study On Institutional Innovation And Market Mechanism Of Carbon Trading

In 2013,China has launched a pilot carbon trading in 7 provinces(cities).After more than 3 years' implementation work,China's carbon trading scale has gradually expanded and market transactions are becoming more and more active.However,a lot of problems are exposed in the pilot.For example,the regional system standards differ widely;the total amount of carbon emission is approved too high;carbon market liquidity is poor;carbon trading price distortion and so on.In the pilot experience being promoted nationally and starting to set up a unified national carbon trading market,there is a need to make an in-depth analysis of the existing problems,and propose further improvement ideas and optimization programs.Based on the comprehensive review and analysis of the pilot situation of carbon trading,this paper makes a profound theoretical reflection on the existing carbon trading system,and proposes the rationality and feasibility of replacing the emission trading system with carbon sink trading system according to the basic requirements of market transaction.Finally,this thesis constructs a preliminary framework of the carbon sink trading market and discusses the problem of the initial framework needing attention.The research shows that the problems of China's carbon trading pilot,in addition to some of its own subjective and objective factors,more importantly,there exists carbon trading market system defects.The carbon trading system extending out of the emissions system will inevitably face the problems of total carbon emission and initial emission rights distribution.In the meanwhile,it is difficult to get rid of the difficulties of low market activity and limitation of interest distribution.To fundamentally solve these problems,only perfecting the system is useless,and it must be innovated through the system.The analysis shows that the current carbon sink has initially had the basic conditions of marketization.The carbon exchange transaction can make up the shortage of existing carbon trading.Of course,replacing carbon trading with carbon sinks transaction requires not only building a new trading market and formulating a new set of trading rules,but also taking into account the impact of its implementation on the relative industries.In this paper,some preliminary discussion and analysis are made on the relevant issues,and the corresponding policy suggestions are put forward.