Research On The Development Of The EU's Carbon Finance Market And Its Experience For Reference To My Country

The formation of carbon financial market,an outcome of coping with climate warming and developing low-carbon economy,originates from the emission reduction targets set by Kyoto Protocol and three mechanisms,consisting of international emission trading(IET),the joint implementation(JI)and the clean development(CDM).At present,the EU already has the largest transnational carbon financial market.Since the formal trading starting in 2005,EU’s carbon financial market has gone through three stages of formation,preliminary development and deepening.The relationship between quota market and derivatives market presents mutually supportive and influential.After repeated improvements and adjustments,the EU has gradually explored three core operating mechanisms,namely,quota allocation,market trading and risk supervision,which are relatively scientific and reasonable.At the same time,the EU strictly controlled the total market supply of emission quota to maintain the stability of carbon trading price.Overall,however,the EU carbon financial market is still immature.There are many uncertainties in the market and trading price fluctuations.Besides emission reduction targets,quota distribution mode and market policy changes,the macroeconomic situation,technology level,and the tendency of carbon-containing energy market prices will affect the carbon financial transaction price to varying degrees.As a new policy tool for the development of green economy in EU,carbon finance can increase emission costs through the commercialization of carbon emission rights,which not only affects the behavior mode of enterprises,stimulates government and private investment in low-carbon technology and related business,promotes the development of green economy,but also enriches the connotation of financial market by introducing derivatives such as carbon futures and carbon options,and exerts price discovery,hedging and risk dispersion functions to the carbon quota market.Through exploration in more than a decade,the EU has accumulated rich and advanced experience in reforming the quota allocation mode,enriching the product types of carbon market,strengthening market supervision and promoting international cooperation.It has proved to our country that in order to realize the orderly and stable development of carbon financial market,we must strictly control the carbon quota supply,combine the efficiency and fairness of the allocation mode,encourage business innovation of carbon financial products,bring the linkage betweenderivatives and quota markets into full play,establish and improve supporting laws and regulations to prevent market risks timely and suppress price fluctuations,strengthen international cooperation in the carbon market and improve the voice of carbon pricing to accelerate development of the national unified carbon financial market.