Carbon trade-What is carbon trading?
"Carbon trading" refers to the Kyoto Protocol greenhouse gas carbon dioxide emissions trading.
Carbon trading is a market mechanism to promote global greenhouse gas emissions to reduce global carbon dioxide emissions. Through the difficult negotiations the United Nations Intergovernmental Panel on Climate Change, May 9, 1992 by the United Nations Convention on Climate Change (UNFCCC, referred to as "the Convention"). Convention an additional protocol was adopted in Kyoto, Japan in December 1997, the "Kyoto Protocol" (referred to as "the Protocol"). "Protocol") to the market mechanism as a new path to solve the problem of reducing greenhouse gas emissions of carbon dioxide as the representative of that of carbon dioxide emissions as a commodity, to form carbon dioxide emissions trading, referred to as carbon trading.
The basic principle of carbon trading is a party to the contract by paying the other to obtain the amount of greenhouse gas emission reduction, the buyer can be purchased emission credits used to slow the greenhouse effect in order to achieve their emission reduction goals. Six kinds of greenhouse gas emission reduction, carbon dioxide (CO2) is the largest such transactions as the unit of per ton of carbon dioxide equivalent (tCO2e), so commonly called "carbon trading". Its market is called carbon markets (Carbon Market).
In the constituent elements of the carbon market, the rule is the first and most important core elements. Some rules mandatory, such as the "Protocol" is the most important one of the mandatory rules of the carbon market, the Protocol provides for quantified emission reduction targets of the Convention, Annex I countries (developed countries and economies in transition); that its greenhouse gas emissions between 2008 and 2012 an average reduction of 5.2% on 1990 levels. Other rules derived from the Protocol, such as the Protocol provides for collective emission reduction targets in the EU in 2012 to 8% lower than the 1990 emission levels, the European Union from redistribution to Member States and the European Union was set up in 2005 Emissions Trading Scheme (EU ETS), established trading rules. Of course, some rules are voluntary, and no international, national policy or law enforcement constraints, regional, corporate or individual voluntary initiated its environmental responsibilities.
Kyoto Protocol came into effect in 2005, the global carbon trading market has had explosive growth. Carbon trading in 2007 from 1.6 billion tons in 2006 jumped to 2.7 billion tons, up 68.75 percent. Turnover growth of more rapidly. 2007 global carbon trading market price value of 40 billion euros, an increase of 81.8% more than 22 billion euros in 2006, global carbon trading market value even in the first half of 2008 with 2007 as a whole was flat.
After years of development, carbon trading market matures, the participating countries the geographical scope of expanding the market structure to a multi-level deepening and financial complexity is quite different. According to the United Nations and the World Bank predicted that the global carbon trading in the 2008-2012 period, the size of the market each year up to $ 60 billion 2012 global carbon trading market capacity of $ 150 billion, is expected to exceed the oil market has become the world's largest market. To look beyond this, the international carbon trading system in 2012 and to be expected. Carbon trading to become the world's largest number of goods is irresistible, while the carbon trading price of the subject of money to bind the right and the monetary functions derived will break the unilateral U.S. hegemony prompted the International Monetary pattern diversification impact.
The root causes of the carbon trading
From an economic point of view, carbon trading followed the Coase theorem, the greenhouse gas carbon dioxide as the representative of the management and governance of greenhouse gases will cause cost differences; daily exchange of commodities can be seen as a right ( property rights) to exchange, then the greenhouse gas emissions can also be exchanged; a result, with the carbon trading has become the most efficient way to solve the pollution problem under the framework of market economy. In this way, carbon trading, climate change, the scientific problem, to reduce carbon emissions, this technology issues and sustainable development, economic issues closely combine market mechanisms to solve the scientific, technical, economic problems. It should be noted that carbon trading is essentially a financial activity, compared with the general financial activities, it is more closely connected to financial capital and the real economy based on green technology: on the one hand the financial capital directly or indirectly invest in the creation of carbon assets projects and enterprises; the other hand, from different projects and enterprises to produce emission reductions into carbon financial market transactions, have been developed into the standard financial instruments.
Under the premise of the rational capacity of the environment, politicians have arbitrarily defined the behavior of the greenhouse gas emissions, including carbon dioxide, is subject to restrictions, the resulting carbon emissions and emission reduction credits (credit) to start scarce, and become a The price of products, called carbon assets. The promoters of carbon assets, the 100 member states of the United Nations Framework Convention on Climate "and the Kyoto Protocol signatory countries. Gradually scarce assets under the provisions of the Kyoto Protocol developed and developing countries of common but differentiated responsibility premise, the flow possible. Developed countries have the responsibility for emissions reductions, while developing countries do not, the resulting carbon assets in the distribution of the world. On the other hand, the reduction in real terms energy, high energy utilization efficiency of the developed countries, energy structure optimization, new energy technologies are widely adopted, so the country further reductions to the cost of high difficulty. Developing countries, energy efficiency, emission reduction, cost is also low. This leads to the same emission reduction units between the different countries there are different costs, the formation of the high price differential. Developed countries in great demand, supply capacity in developing countries, resulting international carbon trading market.
The legal basis for carbon trading
1992 United Nations Conference on Environment and Development (also known as the "Earth Summit"), 155 countries have signed the United Nations Framework Convention on Climate "(The United Nations Framework, Convention on Climate Change, UNFCCC), this Department of the Clean Development mechanism (the Clean Development Mechanism, CDM), the root the parent.
1997 United Nations Framework Convention on Climate Change Third Meeting of States Parties, through the legally binding Kyoto Protocol; Article 12 10 text "to identify a clean development mechanism".
Seventh Meeting of States Parties of the United Nations Framework Convention on Climate Change in 2001, through the implementation of the decision document of the Kyoto Protocol mechanisms, known as the "Marrakech file, including:
The first decision 15/CP.7 number, the Kyoto Protocol, the principles, nature and scope of the Article, Article 12 and Article 17 provides that mechanism.
The first 16/Cp.7 decision the implementation of the Kyoto Protocol, Article 6 of the
Decision 17/CP.7, the implementation of the Kyoto Protocol clean development mechanism as defined in Article 12 of the modalities and procedures ".
The first 18/Cp.7 decision Kyoto Protocol Article 17 of the modalities, rules and guidelines for emissions trading.
Carbon trading mainly based on legal documents.
Three mechanisms of carbon trading
In order to achieve the ultimate goal of the United Nations Framework Convention on Climate global greenhouse gas emissions, the aforementioned legal framework convention of the three emission reduction mechanisms:
The clean development mechanism (Clean Development the Mechanism, CDM)
JI (Joint Implementation, JI)
Emissions Trading Scheme (Emissions Trade, ET)
These three are allowed between states of the United Nations Climate Change Framework Convention, the transfer of emission reduction units, or to obtain, but the specific rules and the role of different
Kyoto Protocol Article 12 specification "clean development mechanism" between Annex I countries (developed countries and countries in transition) and non-Annex I countries registration at the Clean Development Mechanism (CDM Registry) emission reduction units for sale. Are designed for non-Annex I countries to cut emissions, and benefit from the precondition for sustainable development; to assist Annex I countries through the clean development mechanism project activities "emission reduction warrants" (Certified Emmissions Reduction, CERs, dedicated in the clean development mechanism), in order to reduce the cost of fulfillment of the United Nations Framework Convention on Climate commitment. Detailed provisions of the Clean Development Mechanism in decision 17/CP.7, the implementation of the Kyoto Protocol clean development mechanism as defined in Article 12 of the modalities and procedures ".
"Kyoto Protocol" specification in the sixth article "Joint Implementation", Department of Annex I countries under the supervision of the Supervisory Committee Supervisory Committee, the certification and transfer of emission reduction units or access to, use of emission reduction units for the Emission Reduction Unit Emission Reduction Unit (ERUs). Joint Implementation of the detailed provisions in the first 16/Cp.7 decision, "the implementation of Article 6 of the Kyoto Protocol Guide".
The Kyoto Protocol Article 17 specification "emissions trading", it is between the National Registration Department (National the Registry) in Annex I countries, to include "emission reduction unit" warrant "of emission reductions," assigned amount units "(Assigned the Amount Unit, AAUs), certified the transfer of emission reduction units RMUs (Removal Unit, RMUs) or acquired. "Emissions trading" provisions in decision 18/CP.7, the Kyoto Protocol Article 17 of the modalities, rules and guidelines for emissions trading.
Patterns of carbon trading
According to the three mechanisms of carbon trading, carbon trading has been divided into two types:
Quota transactions (Allowance-based transactions): refers to the total quantity control of emission reduction units generated by the transaction, such as the European Union EU emissions trading system, "EU emissions allowances (European Union Allowances, EUAs with) transactions is The Kyoto Protocol emission reduction between countries over emission reductions transactions, usually spot trading.
Project transaction (the Project-based transactions): the trading of emission reduction units generated by emission reduction projects, such as emissions reduction warrants "under the Clean Development Mechanism, Joint Implementation, emissions reduction units", emission reductions resulting from emission reduction plan through the state-to-state cooperation in trading, usually pre-trading futures.
Carbon trading market
March 2009, a total of four carbon exchange in the world:
European Union EU emissions trading system (European Union Greenhouse Gas Emission Trading Scheme, EU ETS)
The United Kingdom and the emissions trading system (UK Emissions Trading Group, ETG)
Chicago Climate Exchange (the Chicago the Climate Exchange, and CCX)
National Trust of Australia (the National Trust, of Australia, NSW), Australia
The United States and Australia are not members of the Kyoto Protocol, the EU emissions trading system and the UK emissions trading system of international exchange, the two exchanges in the United States and Australia is only symbolic significance.
Carbon trading and low-carbon economy
Low-carbon economy based on low energy consumption, low pollution, low-emission-based economic model, another major advancement of human society following agricultural civilization and industrial civilization. Its essence is to improve energy efficiency, development of clean energy technologies, optimizing industrial structure, fundamentally changed the concept of human survival and development.
"Low-carbon economy" was first seen in the government documents in the 2003 UK Energy White Paper "for our energy future: creating a low carbon economy", and then get the strong support of the United Nations. In July 2007, the U.S. Senate proposed a "Low Carbon Economy Act, show that the path of development of low-carbon economy will become an important strategic choice for America's future. Obama came to power, clean energy economy as the revitalization of the U.S. economy, an important means to enhance American leadership. In June 2009, the U.S. House of Representatives passed the 2009 U.S. Clean Energy and Security Act ", the core of the bill there are two: First, to develop clean energy technologies to reduce dependence on fossil fuels; second is to establish greenhouse gas emissions trading system, the development of new carbon finance market, comparable to the size of the market with the oil futures market.
Carbon trading is the only way to use market mechanisms to lead the development of low-carbon economy. Low-carbon economy through technological innovation and optimization of transformation of the real economy will eventually have to reduce dependence on fossil fuels, reduce greenhouse gas emission levels. But historical experience has shown that, without the introduction of market mechanisms, only through voluntary or mandatory behavior of businesses and individuals are unable to reach emission reduction targets. The carbon market starting from the level of capital greenhouse gas emissions are defined by dividing the environmental capacity, an extension of the carbon asset of this new type of capital. Carbon trading climate change factors had been free in the balance sheet included in the balance sheet, changing the company's revenue and expenditure structure. Pricing and distribution of the presence of the carbon trading market, compared with carbon assets to create the conditions. Essentially, carbon trading is a financial activity, compared with the general financial activities, it is more closely connected to financial capital and the real economy based on green technology: on the one hand the financial capital directly or indirectly invest in projects to create carbon assets and enterprises; from the emission reductions generated by the different projects and enterprises to enter the carbon finance market transactions, have been developed into the standard financial instruments. Carbon trading to financial capital and the real economy, China Unicom to guide the development of the real economy, through the power of financial capital. This is the organic integration of the virtual economy and real economy, and represents the future direction of development of world economy.
