Page 165 - Research on Financial Development Mechanism and Path of Forestry Carbon Sequestration in Developing Countries under Double Carbon Targets

Chapter IV Forestry Carbon Sequestration Financial Practice

system also blocks anonymous transactions and privately negotiated bilateral deals.
Clearing and settlement system. The system obtains daily information about all
trading activities from the trading platform, processes all trading activities and delivers
daily and monthly transactions to members.
Registration system. Carbon financial instruments used to record and identify mem-
ber emission reductions and transactions.
3) Methods for forest owners to participate in carbon sink trading
Identify forest carbon sink projects operated by forest owners. In the United States,
forest land owners are required to operate one of three forest carbon sink projects,
namely, the afforestation plan, the sustainable forest management plan and the plan to
produce long-lasting wood products, before participating in the carbon credit transac-
tion. One is the afforestation plan. The land required must be either forested land since
the last 50 years or forested land since 1990. The plan is based on a carbon accumu-
lation table provided by the Chicago Climate Exchange and is used by forest owners
to calculate carbon sinks for afforestation plans. During the contract period, either
thinning or felling of trees is permitted, unless the landowner chooses to sustainably
manage the forest before thinning out the trees. At present, afforestation is the forest
carbon sink project operated most by forest owners in the United States. The second
is the sustainable forest management program. Include existing forest land that has
been certified as sustainably managed by third parties. During the contract period, the
increase in carbon storage must exceed the carbon removal caused by thinning, felling
or death of trees, i.e. the carbon credit earned by forest owners equals the carbon credit
generated from sustainable management of forests less carbon removal caused by forest
land circulation and forest disasters, plus the carbon credit used to produce long-lived
wood products. In the United States, forest management programs have not received
sufficient attention. The third is the plan to produce long-lasting wood products. Under
this scenario, the carbon credits are calculated based on the expected use of the wood
products or carbon sinks after 100 years of landfill. For example, pine or hardwood
sawn timber used for single-family residential construction or furniture are long-lived
products that will earn more carbon credits than pulp wood used for paper or pallets.
Confirm forest owners’ forest carbon credits. Carbon credit is a market term for
carbon sinks. Measured in metric tonnes equivalent (Mte). By calculating the volume
of the forest, it can be converted into the weight of the carbon trade. Forest owners
involved in carbon credit transactions can earn and sell carbon credits as trees grow.
Through the computer model, the productivity and growth rate of the land and the car-

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