Page 164 - 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

transaction costs and reduce risk losses.
3) Establish a forest carbon sink trading service mechanism
It mainly includes relevant independent certification and monitoring (testing) insti-
tutions, independent asset appraisal institutions, independent audit institutions, relevant
institutions, etc. These institutions are profit-making independent institutions, which
independently engage in business activities in accordance with the law. Apart from be-
ing subject to business supervision by industry associations or industry supervision de-
partments, their practice activities are not subject to interference by other government
departments.
4) Establish a regulatory mechanism for forest carbon sink transactions
First, the US Congress has enacted relevant laws and regulations to regulate the na-
tional forest carbon sequestration trade. Second, the government has set up regulatory
authorities to conduct business supervision over relevant exchanges, institutions and
trading entities. The third is to set up industry associations to strengthen the practice
guidance of the industry and to assist the government regulatory authorities in their
work.
1.2.2 US Forest Carbon Sequestration Trading Practice

1) The government issued policies. Activating Forest Carbon Sequestration Trading
Market
For example, if forest owners take the initiative to participate in forest carbon se-
questration projects, they are encouraged to actively participate in the sales of carbon
credits by implementing a property tax exemption policy: for carbon dioxide emitting
enterprises, they are encouraged to actively obtain carbon credits by implementing a
mandatory emission quota allocation policy.
2) The exchange builds a trading platform to promote forest carbon sequestration
trading
The government is mainly responsible for the formulation of rules and supervision
and management, while the pricing of emission rights, trading and other specific trans-
actions, rely more on the market itself to complete. The Chicago Climate Exchange is
the primary commodity trading market for carbon credits in the United States. Founded
in 2003, it is the world’s first and only carbon sink exchange in North America. The ex-
change trading system has three components.
Trading system. The system is used by registered users of the exchange to conduct
transactions online, and its greatest feature is that prices are open and transparent. The

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