Page 176 - 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

estry carbon sequestration trading have gradually developed into the following three
categories: First, forestry carbon sequestration projects under the international climate
cooperation mechanism, such as CDM forestry carbon sequestration projects and proj-
ects for reducing deforestation and forest degradation in developing countries (here-
inafter referred to as “REDD+-plus”); Second, forestry carbon sink projects under the
independent carbon emission trading mechanism, such as the Gold Standard (referred
to as “GS”) project initiated and supported by the World Wide Fund for Nature (WWF)
and the World Conservation Union (IUCN), and the Verified Carbon Standard (referred
to as “VCS”) project established by the non-profit organization VERRA; Third, forest-
ry carbon sequestration projects under the voluntary emission reduction trading mecha-
nism of various countries, for example, forestry carbon sequestration projects under the
voluntary emission reduction trading mechanism in China with the national certified
voluntary emission reduction (CCER) as the carrier. According to the December 2022
Report on the First Performance Cycle of the National Carbon Emission Trading Mar-
ket, the offsetting mechanism brought by voluntary emission reduction projects such as
forestry carbon sequestration projects has played a positive role in promoting the ad-
justment of China’s energy structure and improving the ecological compensation mech-
anism.
In recent years, the afforestation area of China has been continuously expanding,
and its barren hills and wasteland suitable for afforestation are vast, which has the re-
source advantages needed for the development of forestry carbon sequestration proj-
ects. In 2006, China officially launched the CDM forestry carbon sequestration proj-
ect. In 2012, China issued the “Interim Measures for the Administration of Voluntary
Greenhouse Gas Emission Reduction Transactions”. After five years of development,
nearly 100 CCER forestry carbon sequestration projects were completed. In 2017,
China suspended the acceptance of new CCER projects and put the resumption of the
CCER trading market on the agenda in the past two years. In the past 20 years, the
practice of forestry carbon sequestration trading in China has been accompanied by the
process of China’s participation in global climate governance, which has experienced
the process from participating in the international carbon emissions trading mechanism
(mainly CDM projects) as the host country to gradually establishing the domestic car-
bon emissions trading mechanism.
Throughout the existing literature, the research on forestry carbon sequestration
transaction in China is mainly focused on the research on the transaction system and
technology, such as macro-system, policy research and carbon sequestration potential

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