Page 103 - Research on Financial Development Mechanism and Path of Forestry Carbon Sequestration in Developing Countries under Double Carbon Targets

Chapter 2 Forestry Carbon Sequestration and Carbon Finance

market in Europe. South Korea has issued the “Forest Carbon Offset System” and the
“Management and Improvement of Carbon Sink Absorption Law”, and has formulated
specific programs such as afforestation and reforestation, sustainable forest manage-
ment, forest biomass energy utilization, vegetation restoration, and avoidance of defor-
estation and forest degradation.
(2) Establish a multi-level forestry carbon sink standard system
At present, there are mainly four types of forestry carbon sequestration standards in
the world: First, the methodologies published by the Intergovernmental Panel on Cli-
mate Change (IPCC), including the 2006 National Greenhouse Gas Inventories Guide,
the 2000 Good Practice Guide and Uncertainty Management, the Good Practice Guide
for Land Use, Land-use Change and Forestry, and the Special Report on Land Use,
Land-use Change and Forestry. The second is the CDM carbon sink project standards
based on the rules of the Kyoto Protocol, including baseline and monitoring method-
ologies and applicable tools relating to CDM afforestation and reforestation projects
approved by the CDM Executive Board. Third, some non-governmental organizations
and departments have formulated some standard systems based on the standards of the
voluntary carbon market, including the Climate, Community and Biodiversity Stan-
dards (CCBS), the Certified Carbon Standard (VCS) for agriculture, forestry and other
land use projects, the Carbon Fix Standard (CFS) and the Plan Vivo System. The fourth
is the forestry carbon sink and carbon trading standards formulated by some countries
based on their own carbon reduction policies. For example, Australia and New Zealand
have established carbon management systems applicable to their own countries, which
include forestry carbon sink projects and carbon sink transactions.
(3) the forestry carbon sink is classified into the carbon credit mechanism
At present, forestry carbon sinks have been incorporated into the major global car-
bon credit mechanisms. The forestry sector has signed the most carbon credits in the
past five years, accounting for 42% of the global total. The first is to establish a carbon
offset mechanism. In order to improve the flexibility of compliance, most countries and
regions have adopted a “first loose and then tight” carbon emission quota management
policy, and established a supporting carbon offset mechanism. For example, Califor-
nia stipulates that super-emission enterprises can purchase carbon credit units to offset
carbon emissions; The EU allows the use of CERs generated from CDM projects in
place of carbon emission quotas (EUAs) for performance. The second is to clarify the
rules for the use of carbon credit units. There are generally limits on the use of carbon
credit units. If Australia stipulates that only 50% of the carbon credit units in the EU

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