Environmental Engineering Reference
In-Depth Information
7.5.3 Outlook for China's Carbon Market
Carbon market is an interactive platform requiring multilateral participation. Practical
experience from international carbon market has proved that, the development and
maturity of carbon market must go through the process of “carbon emission project -
carbon emissions allowance - financial derivatives of carbon emissions” and
“voluntary - compulsory - the combination of voluntary and compulsory”. There is a
longwaytogobeforearealcarbonmarketcanbeestablishedinChina.
As the world's largest carbon emission nation, China's stance and appeal in
international climate negotiations are an important part that affects the political pattern
of international climate. Chinese target and action tackling climate change and carbon
emissions have become a major concern in the world. Meanwhile, the intensifying
contradictions between the development requirements for rapid industrialization and
the increasingly scarce energy and environmental resources make it extremely urgent
for China to persist in the course of sustainable development and hasten the economic
transition of green and low-carbon development.
Judging from international carbon market construction and development experi-
ence, China selects market-oriented emission reduction mechanism and transits from
administrative government order to market-oriented means, which can help realize
economic costs for low-carbon transition and relieve the stress in international climate
negotiations. From its development practice, trials of carbon emissions trading and
emission reduction trading from some regions and industries are the requirements for
steady development of Chinese economies and industries.
China has intensive trials of carbon trading mechanism during the “12th Five-
Year Plan” period. The intense carbon trading pilot is chiefly for the purpose of
strengthening capability construction of carbon emission reduction target by way of
market mechanism taking regional pilot as a point of entry, understanding basic
carbon trading information of each region, and boosting smooth transition from
regional market to national unified market. The influence of carbon emission
trading pilots on economic by the end of “12th Five-Year Plan” will determine
whether China is to establish nationwide carbon emissions trading market.
During smooth operation and step-by-step maturity of regional and national spot
carbon market, tamp theoretical research, actively and prudently push innovative
mechanism for carbon finance and build a finance development road for energy
climate with Chinese characteristics with an eye to the construction of financial
derivatives market like carbon emission futures.
At present, from interpretation of the issued policies and the analysis of current
carbon market construction, we believe that the Central Government will continue
to prepare and perfect China's carbon trading system during the “12th Five-Year
Plan” and the “13th Five-Year Plan” period. Regional carbon trading pilot work
can be developed steadily and has initially formed a carbon trading market with
Chinese characteristics, which will further push low-carbon transition of China's
economy.
