An evaluation on regional differences in the level of carbon finance

This paper constructs a carbon financial development index to measure the development level of China's various provinces and regions. It makes a comparative analysis of the general situation and trends of China's carbon finance development to investigate the reasons for restricting the level of the development of carbon finance, then put forward suggestions in policy to improve the development level of China's Carbon Finance.


Introduction
Carbon trading has developed all over the world.The European Union and the United States have formed a relatively complete carbon trading system.At the same time, Japan has completed the pilot work of carbon trading and India can also trade carbon financial derivatives.Countries around the world are competing for the international carbon trading market.China, as a provider of CDM, has great potential in the developing carbon finance.At present, China has carried out carbon trading pilot projects in seven areas such as Shanghai, Tianjin, Beijing and other regions.The banking industry began to implement green credit to reduce the credit for the enterprises of high emission, high energy consuming and high polluting.At the same time, to give credit discount for the enterprises with environmental protection and new energy .Some banks have developed carbon financial products.However, China's carbon practice are low in efficiency and the unbalanced on development in various regions because the financial trading platform is fragmented, the intermediary market is not perfect and there lack of relating policies and regulations.

Comparison on the regional carbon finance development level 2.1 Index system for the development of carbon finance
The measurement index system of the development level of carbon finance is built according to the level, and is divided into three levels.

Evaluation on the provincial carbon finace index
The data of this paper comes from the China Statistical Yearbook, China energy statistical yearbook, Financial Statistical Yearbook .itmakes 30 provinces in China as the research objects, for China is divided into the west region of 12 provinces, the middle region of 8 provinces and 11 in the East (Tibet is not included for the non availability of some data in Tibet).The data were processed with positive and non quantitative approach and the weight of the index is determined .The carbon finance development level of 30 provinces of China in 2007 and 2012 were analyzed and compared based on hierarchy processing and with the help of Excel and MATLAB.

Comparison on the regional carbon finance development level
It is found that the development level of carbon finance in the provinces of China has been enhanced, but the rate of increase is different (see Table 1 The top five provinces are Beijing, Shanghai, Zhejiang, Guangdong and Fujian; the last five provinces are Xinjiang, Hebei, Ningxia, Inner Mongolia and Shanxi.
The industry structure of Shanxi and Hebei is not low carbon because these two provinces are typical resource-based cities who are rich in energy but low in efficiency; Inner Mongolia, Ningxia and Xinjiang belong to the western region thus they lack of human resources and are backward in education and imperfect in market system and weak in infrastructure .All these factors make the function of the market allocation of resources in the regions difficult to play, the efficiency of capital not high, role of financial development to promote the economic growth and the adjustment of industrial structure remain very limited.

Conclusion and suggestions
The overall development level of China's carbon finance is relatively backward.The research shows that the industrial structure adjustment, energy intensity change, innovation ability, clean technology level and policy incentive have great impact on carbon finance.Therefore, China's carbon financial development should focus on regional coordination to promote the development of China's carbon finance.We make the following suggestions.
First, to actively cultivate low carbon industry.Ecological agriculture and organic agriculture with the characteristics of circular economy should be vigorously developed; the energy structure of the second industry should be adjusted and the renewable energy should be promoted.The green service industry should be developed to environmental protection industry cycle chain.
Second, to reduce energy intensity accordingly.On one hand, coal energy should be reduced and renewable energy should be developed in the energy based cities.On the other hand, the clean energy and green energy, should be researched and diversified energy consumption system should be established.
Third, to provide technology support and capital support.The national relevant departments should establish the platforms to provide service for the key common technology innovation and the application of scientific and technological achievements to promote international cooperation in the field of low carbon technology.The government should set up special funds to provide financial support for low carbon technology innovation and establish a new information communication system to speed up the disclosure of relative information.
Fourth, to develop the carbon trading market and innovative the carbon trading products.Various types of financial derivative products should be encouraged to improve the carbon financial system and support the low carbon industry and low carbon finance development.

Table 1 .
area is the main Coal distribution area , and the energy consumption in the coal industry accounted for very high proportion due to the high energy consumption industry such as coal, chemistry, building materials, electric power, metallurgy; In addition, forest the coverage rate is low in the Shanxi Loess Plateau leading to poor ability to offsetting the carbon emissions which makes the carbon finance development level of Shanxi lower than other provinces.China provincial carbon fiance index of year 2007/2012.
Beijing has taken active actions in terms of energy saving, emission reduction, industrial structure adjusting and optimizing the credit structure.The financial system is relatively sound and the carbon financial market is more developed in Beijing which can give full play to the capital oriented role of finance.The development level of carbon finance in Shanxi lags behind the other provinces, because this