Page 104 - Research on Financial Development Mechanism and Path of Forestry Carbon Sequestration in Developing Countries under Double Carbon Targets

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

system can be used to settle the annual carbon liabilities; Kyoto Mechanism Carbon
Credit Units cannot exceed 12.5%, allowing enterprises to deposit and overdraft ahead
of schedule, but the overdraft ahead of schedule is capped at 5% of the carbon liabili-
ties in the previous offsetting year. The EU stipulates that in the first and second stages
of performance, enterprises will use the international carbon credit line to offset the
carbon emission quota that does not exceed 11% of the 2008-2020 free quota or the
international carbon credit line in the second stage (whichever is higher). The offset cap
for the newly added emission control subject in the third stage is 4.5% of the certified
carbon emissions in that stage. In terms of scope of use, most countries are limited to
domestic use. Third, the establishment of a carbon credit incentive and restraint mecha-
nism. If New Zealand divides forests into two stages according to their years: first, after
1989, forest owners can claim New Zealand units corresponding to their forest carbon
reserves to sell for profit; The second is the forest before 1990. There are two kinds of
situations. The first is to apply for a free New Zealand unit and then harvest the forest.
The new Zealand unit must be returned to the government. If the new Zealand unit has
been sold for free, the corresponding New Zealand unit must be purchased based on the
market price and returned to the government. The second case is to destroy the original
forest and then carry out afforestation. All New Zealand units claimed by the original
forest must be returned.
(4) Promoting Forestry to Enter the Carbon Market in a Steady and Orderly Way
The first is to determine the order in which forestry will be incorporated into the
carbon market. For example, New Zealand first incorporated forestry into the carbon
emission trading system in 2008, and then gradually incorporated all sectors such as
conventional energy, transportation fuel, industrial gas, waste resource treatment, ag-
riculture and animal husbandry into the carbon emission trading system. The contribu-
tion of forestry carbon sinks to New Zealand’s emission reduction reached 25%-30%.
The second is the gradual transition of pricing from regulation to market. For example,
in order to prevent competition for emission reduction and carbon sink projects in New
Zealand, the carbon trading unit is uniformly defined as a “New Zealand unit” and the
price of each “New Zealand unit” is fixed at S $25 during the transition period, which
will be gradually released after the transition period. Australia stipulates that a fixed
carbon price (A $23/t) will be implemented in 2012-2015, with a transition to a flexible
price in 2015-2018 and a floating price in 2018; California has set the auction price at
a minimum of $10 a tonne (2012) and will increase by 5% a year thereafter (plus infla-
tion).

90