Research On Carbon Sink Price Risk Management

In order to alleviate the aggravation of the greenhouse effect,control the emission of greenhouse gases,and achieve the coordinated development of economic growth and environmental protection,China clearly proposed the goals of "carbon peak" in 2030 and "carbon neutrality" in 2060 in September 2020 under the framework of the Paris Agreement.As early as 2011,China began to establish a carbon pilot market and actively constructed a unified carbon market covering the whole country.Subsequently,the trading of this unified carbon market was officially launched on December 19,2017.According to the plan,China will start launching carbon sink trading derivatives in 2020,actively promoting the market development to gradually mature.In many derivatives,insurance and options have the function of risk redistribution,playing a significant role in helping enterprises avoid carbon trading price risks.For this reason,this paper hopes that insurance companies and futures companies can strengthen cooperation to fully reflect their advantages and provide support for effective management of carbon sink market price risk.In terms of specific research,this article first collects and organizes transaction data from China’s unified carbon sequestration market and eight pilot carbon sequestration markets,analyzes the current development status of each market based on the operating mechanism of China’s carbon sequestration market,and analyzes the characteristics of carbon sequestration price fluctuations in the pilot market.It is concluded that the carbon sequestration trading market has characteristics such as large regional differences,concentrated trading,and high volatility uncertainty.At the same time,it provides an overview of factors that may affect carbon sequestration price risks,And conduct comparative analysis.Design the "insurance+futures" operation mode based on the special attributes of carbon quota assets,and verify the feasibility of the "insurance+futures" model.The paper also takes the Shanghai carbon sequestration market pilot as an example to simulate the performance results of carbon insurance and carbon option contract dates for three months starting from January 2021.Based on the simulation results,it can be seen that paying a premium of less than 200 yuan can effectively avoid economic losses of tens of thousands of yuan,indicating a significant hedging effect.Finally,analyze the problems that may arise during the operation of the "insurance+futures" model,and provide reasonable suggestions based on the analysis results.After verifying the feasibility of the "insurance+futures" model for agricultural product price insurance,this model is applied to the field of carbon finance,and appropriate adjustments are made based on the actual situation of the carbon market.This provides solutions for the huge compensation problems encountered in the innovation process of carbon insurance products,further enriching the theoretical ideas of Chinese scholars on carbon insurance,and providing new ideas for derivative design in the carbon market,And provide feasible path references for risk avoidance for emission control enterprises.