The enlightenment of the EU carbon market experience to the construction of China's carbon market
ZHANG Jinliang
WEI Zilin
DONG Xinyue
Abstract：The EU carbon futures market was officially inaugurated in 2005.Over the course of 19 years,it has evolved into the world's longest-running,most actively traded,and most robust carbon futures market.In contrast,China's carbon market currently suffers from illiquidity and a lack of financialization,with the paucity of carbon financial derivatives such as carbon futures and carbon options being a significant contributing factor.Consequently,by leveraging the experience of the EU carbon futures market and integrating it with China's carbon derivatives practices,the development of China's carbon futures market emerges as a potent strategy to enhance the financial attributes and price discovery functions of China's carbon market.This paper commences with a comprehensive review of the development trajectory of the EU carbon futures market,scrutinizing the challenges encountered and the remedial measures adopted.It proceeds to elucidate the current practices within China's carbon derivatives market.Finally,drawing on the insights garnered from both China's practices and the EU's experience,the paper proffers recommendations for the construction of China's carbon futures market.
Keywords：EU carbon marketcarbon emissions futurescarbon pricecarbon derivativesmarket experience
Publication Date：2024-11-20
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：9( 13-21 )