The Digital Transformation of China's Carbon Finance Market

Abstract

As the world races toward carbon neutrality and the Kyoto Protocol keeps guiding national pledges, carbon finance has moved to the centre of the climate arena, praised for its promise to curb emissions while steering capital toward greener growth. In parallel, waves of fintech breakthroughs keep rewriting the rules of traditional finance and trading, opening fresh doors for carbon markets and raising puzzles that regulators and participants still need to solve. This paper focuses on China's carbon finance market, systematically sorts out the theoretical basis, technology application, policy mechanism and practical path of digital integration of carbon finance, and focuses on the contribution of key technologies such as blockchain, big data, and artificial intelligence to improving the transparency and efficiency of the carbon market. It is found that there are four mechanisms for the digital transformation of the carbon finance market: first, digitalization realizes the upgrading and reshaping of the MRV system; second, digitalization to build an efficient and credible market environment; third, digitalization promotes the innovation and application of financial instruments; Fourth, digitalization is driving "RegTech" to a new stage. However, although digital technology has significantly promoted the system efficiency of carbon finance, there are still problems such as technical security risks, imperfect regulatory systems, and market fragmentation.