Analysis Of The Influencing Factors Of China's Carbon Emissions Trading Market

The ultimate goal of the Global Energy Transition,characterized by cleanliness and decarbonization,is to gradually reduce carbon dioxide emissions and ultimately achieve net or zero emissions with the increasing severe of Global Climate Change issues.As an important means to achieve Energy Transition,the Carbon Emission Trading System plays an irreplaceable role in achieving greenhouse gas reductions and promoting low-carbon and clean development.As a non-Annex I Party to the United Nations Framework Convention on Climate Change,China promised the international community in 2009 that the carbon emissions of per unit of GDP in China would decrease by 40%-45%compared to 2005,with non-fossil energy consumption accounting for 15%of the primary energy consumption in 2020.In 2015,the Chinese government submitted the“Intended Nationally Determined Contributions”to the United Nations,promising that China's carbon dioxide emissions can reach the peak around 2030,and China would strive to reach the peak as soon as possible,then the unit of GDP's CO₂ emissions would have fallen by 60%-65%compared with 2005 and Non-fossil energy consumption would account for about 20%of primary energy consumption.In order to achieve the goal of Intended Nationally Determined Contributions,China began planning the Carbon Emission Trading System in 2011.In 2013,the pilot projects of Carbon Emission Trading Market were launched in 7 provinces and cities.On December 19,2017,after summarizing up the pilot experience,China began to promote the construction of a National Carbon Emission Trading Market?electricity industry?throughout the country.In 2017,the spot trading volume of China's Pilot Carbon Emission Trading Markets reached 67.4 million tons.However,from the perspective of practice and research,China's Carbon Emission Trading Market is still in its early stages.Academic field and policy practice departments still have insufficient understanding of the current and future main influencing factors,channels and mechanisms of Carbon Emission Trading Market.Based on the research on the current status of the carbon emissions trading market,this paper briefly analyzes the economic theory,operation mechanism and development process involved in the carbon emissions market.On this basis,the main influencing factors of the carbon emissions trading market are analyzed,and the development of Renewable Energy and Green Certificate prices are creatively added to the influencing factor model as a new influencing factor.Through theoretical analysis,we found that the price of Green Certificates,Renewable Energy costs,electricity coal prices,equilibrium electricity prices are inversely related to Carbon Emission Allowance prices.The price of European Carbon Emission Allowance,the price of Certified Emission Reduction Certificates,PMI and carbon prices are in the same direction.Based on the theoretical analysis,the data of five domestic pilot provinces and cities are used to conduct empirical research on the effects of the five main factors affecting the Carbon Emission Trading Market.Based on this,we can know the main factors of the Carbon Emission Trading Market,and the channels and working principles that they rely on.The paper also puts forward relevant suggestions to adjust the relevant systems of the Carbon Emission Market in response to these influencing factors.