Experts suggest the financialization of the carbon market: full consideration of risks and impacts

From the 15th to the 17th, Taiyuan, Shanxi, the 9th National Annual Conference on Low-Carbon Development Management was held here.

China News Service, Taiyuan, May 16 (Gao Ruifeng) "The development of carbon market financial derivatives must fully consider the risks brought by the financialization of the carbon market and the impact on the development of the carbon market.

In September 2020, China announced that it "strives to reach the peak of carbon dioxide emissions by 2030, and strive to achieve carbon neutrality by 2060.

According to Zhang Xiliang, 61 countries and regions currently adopt or plan to adopt carbon pricing tools, of which 31 choose carbon markets and 30 choose carbon taxes.

In 2011, China launched seven carbon trading pilots in Beijing, Shanghai, Tianjin, Chongqing, Hubei, Guangdong and Shenzhen; in 2013, the Shanghai carbon emissions trading market launched trading; in 2016, Fujian became the eighth carbon trading pilot; in 2017 , The national carbon market construction process started in phases; starting from January 1, 2021, the first compliance cycle of the national carbon market officially started.

"More than 70% of energy-related carbon emissions come from industrial sectors such as energy and manufacturing, more than 70% of electricity is used in the industrial sector, and about 50% of coal is used in the power generation and heating sector.

For the first time, China has consolidated the responsibility for greenhouse gas control and emissions from the national level to enterprises, and promoted the upgrading of industrial technology through the market force mechanism.

At present, China's urbanization and industrialization process continues.

Zhang Xiliang suggested that, based on national conditions such as emission reduction commitments, emission structure, and market conditions, the design of the national carbon market should be improved in stages, and the national carbon market total setting should be organically combined with the national carbon emissions control system to give full play to the main body of the carbon market.

　　"An effective carbon market should have the characteristics of high market participation and activity, reasonable carbon price levels, effective emission reduction incentives, good market order, low carbon leakage risk, and low competitiveness for enterprises and industries," said Zhang Xiliang.

　　At present, carbon trading pilot areas and financial institutions have successively developed financial products such as carbon bonds, carbon options, and carbon funds.