Climate for Business

Opportunities for Financial Institutions and Sustainable Development in the Chinese Carbon Market

Datos Bibliográficos

ID12308385
AutoresAlex Y Lo (0000-0002-5953-4176, The Kadoorie Institute, University of Hong Kong; Hong Kong China, autor de correspondencia), Xiang Yu (0000-0001-6541-1562, Institute for Urban and Environmental Studies; Chinese Academy of Social Sciences; Beijing China)
Año2015
Volumen23
Número6
Páginas369-380
Fecha de publicación2015-06-22
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaSustainable Development (JOURNAL)
Identificadores de la revistaISSN: 0968-0802 • E-ISSN: 1099-1719
EditorialWiley (PUBLISHER • GB)
DOI10.1002/sd.1597
OpenAlexW2162942972
IdiomaEN
Citas recibidas8
Referencias citadas21

Considerable efforts are being organized to build a functioning carbon market in China. This paper presents an overview of the development of the Chinese carbon market and offers an industry perspective on the domestic regulatory and investment environments. It is based on a review of relevant publications and interviews with Beijing-based finance executives. We found that few financial institutions with the expertise required have been brought into the process of institutional development. Corporate demand for advanced financial services linked to emission trading is weak. Current regulations permit limited trading options, significantly reducing investment opportunities. The market scale is too small to attract investors and financial service providers. Consequently, the Chinese carbon market remains illiquid. Domestic financial institutions have not assumed a critical role in market development. It is suggested that policy-makers minimize administrative intervention in the market, but a modest degree of direct administrative control is still considered to be instrumental. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

Beijing · Business · China · Economics · Financial market · Financial services · Investment (military · Politics · Sustainable development · Climate Change and Sustainable Development · Climate Change Policy and Economics · Energy, Environment, Economic Growth · Finance