A Review on the Establishment of the Chinese Carbon Emission Rights Trading Market

Carbon Emission Rights Trading system is an environmental policy based on the utilization of market power and economic incentive.The three emission reduction mechanisms,Clean Development Mechanism(CDM),Joint Implementation(JI)and Emission Trading(ET),have both advantages and disadvantages.European Union Carbon Emission Trading Scheme(EU ETS),Chicago Climate Exchange(CCX)are two most representative carbon emission rights trading systems around the world.Chinese carbon emission trading market's development has some problems such as lack of pricing power,carbon financial market development lagging behind,absence of uniform standards and trading market etc.There are some primary causes of Chinese carbon emission rights trading market's inadequate development,for example,the carbon emission rights has no yet commodity attributes;the operating mechanism of carbon emission reduction management is inefficient;the basic work of data collection,quota allocation,emission supervision and measurement is defective;enterprises have no enough necessary knowledge about greenhouse gas emission reduction and trading.Therefore,the major policies of establishing a sound Chinese carbon emission rights trading market are vigorously advancing pilot project of carbon emission rights trading,gradual policy of the change from voluntary to compulsory,promoting the progress of carbon financial markets,forming non-governmental supervision regulator and strengthening legal institutional construction of carbon markets.