Page 179 - 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

opment and transaction of these projects. In addition, after the Paris Agreement was
reached, the pattern of international climate cooperation has evolved. The responsibility
of developing countries for emission reduction has been changed from non-mandatory
emission reduction to “common but differentiated” responsibility. Whether developing
countries such as China continue to be identified as host countries of CDM projects has
aroused controversy. Therefore, the CDM project in China has experienced a rapid de-
velopment from 2007 to 2012, and then it is in a state of “cliff-cutting” and “low-walk-
ing”. Since May 2015, no new CDM projects have been successfully registered in Chi-
na, and the existing CDM forestry carbon sink projects have also stagnated in terms of
transactions.

3.1.2 the national certified voluntary emission reduction (CCER) transactions
in forestry carbon sequestration projects

Although the development and trading of CDM projects have been suspended in
China, the practice of CDM projects has undoubtedly promoted the process of forestry
carbon sequestration trading in China. In 2011, the National Development and Reform
Commission agreed to carry out pilot carbon emission trading in Beijing, Tianjin,
Shanghai, Chongqing, Guangdong and Hubei provinces. The Interim Measures for the
Administration of Voluntary Emission Reduction Trading of Greenhouse Gases issued
in 2012 and the Interim Measures for the Administration of Carbon Emission Trading
issued in 2014 formally incorporate the CCER trading and offsetting mechanism into
the domestic carbon emission trading system. Enabling non-emission-limiting enter-
prises and units to sell their CCRs to emission-limiting enterprises through voluntary
emission reduction actions, so that emission-limiting enterprises can use the purchased
CCRs to offset part of their confirmed carbon emissions and perform the contract;
Among them, projects that absorb greenhouse gases, such as forestry carbon sinks, are
explicitly included in the main types of projects traded by the CCER.
Since 2013, seven pilot provinces and cities have successively launched local pilot
carbon markets, incorporating the CCER project into the regional carbon market as a
offsetting mechanism to varying degrees. This indicates that the focus of China’s for-
estry carbon sequestration trading practice has begun to shift to the domestic carbon
market when the international market is stagnant. According to the research and statis-
tics of Cao Xianlei and Cheng Baodong: from 2013 to 2017, 97 CCER forestry carbon
sequestration projects were approved. From the perspective of project methodology,
there are 66 carbon sequestration afforestation projects, accounting for 68% of the total

165