Development of China's Carbon Finance Market and International Experience

Abstract

Carbon finance, a crucial component of the carbon market, substantially supports carbon trading and the reduction of carbon emissions. Global carbon market structure has advanced over the past ten years based on experience from around the world. Although China's carbon emission trading system has been initially established, there are still deficiencies in its laws and regulations, trading mechanisms and other aspects. This paper analyzes the current situation and problems of the development of China's carbon finance market in light of the successful experience of the development of mature carbon markets in the international arena, and draws lessons from the experience applicable to China's carbon trading and carbon finance. At present, China's carbon financial market is in a rapid development stage. Many product and system innovations have been made in the process of carbon trading pilot construction, and a series of results have been achieved. Nevertheless, there are still problems such as the lack of carbon market activity, and international experience has brought to the development of China's carbon finance market the experience of establishing rich market participants and clarifying the attributes of carbon finance.