with certain emission quota to relevant companies, and the companies can only emit greenhouse gas within their quotas. if a company wouldn ’ t meet the emission quota requirements, it could purchase extra emission quota from other companies that achieved good performance in greenhouse gas emission, or help developing countries to promote clean energy program as well as exchange for extra “ credit quota ” through planting trees. in china, we should learn from the international carbon trading mechanism to study the emission quota system and develop emission quota trading market. through price - discovery function of the financial markets, different economic entities can adjust their interests and fulfill the target of environment protection, energy conservation and reduction of pollutant emission. the emission quota trading system could also provide a new market - based compensation mechanism for the protective cultivation of farmland. in summary, financial institutions should fully recognize the importance and urgency of energy conservation and reduction of pollutant emission, take effective measures earnestly to promote the realization of targets set for energy conservation and reduction of pollutant emission in the 11th five - year plan period as well as a harmonious and sustainable economic and social development.

zhou xiaochuan : supporting the efforts of energy conservation and reduction of pollutant emissions through financial markets abstract of an article by mr zhou xiaochuan, governor of the people ’ s bank of china, published in green leave magazine. * * * energy conservation and eco - environment protection were basic conditions for a healthy and sustainable economic development, an important content of promoting harmonious relations between the human beings and the nature and establishing a socialist harmonious society as well as a reflection of the principles of “ put the people first ” and scientific development approach. the communist party of china ( cpc ) central committee and state council attached great importance to the work of energy conservation and reduction of pollutant emission by making a series of important policies and arrangements. in may 2007, the state council issued the comprehensive work plan for energy conservation and reduction of pollutant emission to stress the importance of the work and focus on relevant policy implementation. in june, the state council established a leadership group on energy conservation and reduction of pollutant emission, headed by premier wen jiabao. it shows that energy conservation and reduction of pollutant emission has become a top priority for our work. financial industry should improve financial services to energy conservation and reduction of pollutant emission and carry out the instructions laid in the videoconference of the state council. additionally, financial industry should strengthen awareness of social responsibility and risk prevention, establish effective information mechanism, provide market and policy support to production capacity allocation appropriate with environment endurance, reduce price distortion so that market can play a fundamental role and encourage industrial structural upgrading and a shift of economic growth model through financial market. i. highlight financial industry ’ s social responsibility and risk prevention awareness in environment protection, energy conservation and reduction of pollutant emission in spite of rapid economic growth and magnificent achievements in economic development in recent years, we have paid high costs in terms of resources and environmental degradation, conflicts between economic development and resource and environment have become increasingly poignant and people have strong complaints about environment pollution. this is directly related with unreasonable economic structure and extensive growth mode. if we don ’ t accelerate economic restructuring, shift economic growth mode, the economic development will be unsustainable. in the global compact, proposed by secretary general mr. koffi annan and initiated by the un in 2000, social responsibilities of enterprises on environment were clearly stressed and enterprises should prepare for environmental challenges and share more responsibilities in regard of environment protection, and encourage application of environment - friendly technologies.