Research On The Regulation System Of China’s Carbon Emission Trading Market

Carbon emissions trading,which is a tool to reduce greenhouse gas emissions and address climate change by market means.It is also an important safeguard measure for China to achieve the development vision of "carbon peak" and "carbon neutral" as scheduled.At the end of 2020,the Ministry of Ecology and Environment issued the "Carbon Emission Trading Management Measures(for Trial Implementation)",which stipulates the subject and object of the market,as well as the principle of regulation.In 2021,the national carbon emission trading market has been launched.Therefore,it is imperative to establish an effective and appropriate law system,which is suitable for China’s practice of carbon emission trading market,to regulate the market.However,a review of the current situation of national and local legislation of carbon emission trading market regulation in China in last decade,and combining with the research on the actual situation of carbon emission trading market operation in China,some problems had been noticed.Low level of legislation,weak stability of the system,lack of control of regulation mechanism of trading order and trading price,imperfect monitoring and reporting verification mechanism,lack of specific legal responsibility,and low level of public participation are the most significant issues.To promote the construction of China’s carbon emissions trading market regulatory system,we can draw on the market regulatory system of the European Union,the United States,New Zealand and other overseas countries,where the carbon emissions trading market was launched earlier and the regulatory mechanism is more mature.Their implementation effects,so as to draw inspiration for the path of building and improving China’s carbon emissions market regulatory legal system.Firstly,a system based on the national situation should be built,and the various supporting systems for carbon emissions trading should be tightly combined established.Secondly,plan should be comprehensive,and make a good connection,so as to effectively balance the dialectical relationship between environmental protection and economic development.Third,moderate intervention and market stability.Drawing on the EU MSR and the US CCR and ECR regulation and reserve system,a system based on national realities on the legal track should be built.Not only to avoid the risk of a bubble caused by an overheated market,but also to ensure the effective achievement of emission reduction targets.The direction of improvement of China’s carbon emissions trading system is as follows: Firstly,in terms of the choice of institutional path,it is recommended that a sound system of carbon emissions trading market regulation at the national level be gradually established,the level of special legislation be upgraded,and an effective interface with existing laws and regulations be formed to bring about synergy.Secondly,in terms of institutional arrangements,systematic price regulation,liquidity risk warning and market access mechanisms for special participants could be built respectively.Thirdly,in terms of the safeguard system,the monitoring and reporting verification system should be improved,legal responsibilities should be firmly established and a public participation system should be set up,so as to realize the compliance of the carbon emission trading market.