Page 181 - 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

and the offset ratio shall not exceed 5% of the carbon emission quotas to be settled”.
Since 2021, the Ministry of Ecology and Environment has repeatedly made public re-
plies that it is revising relevant management measures and technical specifications “to
speed up the pace of restarting the voluntary emission reduction trading mechanism” in
the form of replying to proposals made by NPC and CPPCC representatives and hold-
ing regular press conferences. With the launch of the national carbon market in 2022
and the completion of the expansion of the national carbon market to seven industries
other than power generation, namely, petrochemical, chemical, building materials,
steel, nonferrous metals, paper making and aviation, the resumption of the CCER trad-
ing market is expected to accelerate.
At the regular press conference in June 2023, the Ministry of Ecological Environ-
ment explained the progress of the CCER market: “At present … the infrastructure
necessary to launch the voluntary emission reduction trading market has been basically
completed. The organization has established a nationwide unified voluntary emission
reduction registration system and transaction system, and drafted registration rules
and transaction settlement rules. At present, the two systems have completed the pre-
liminary acceptance and have met the basic conditions for on-line operation … strive
to launch the national voluntary greenhouse gas emission reduction trading market as
early as possible this year, and maintain the integrity, fairness and transparency of the
market. “ On July 7, 2023, the Ministry of Ecology and Environment released the draft
of “Measures for the Administration of Voluntary Greenhouse Gas Emission Reduction
Transactions (for Trial Implementation)”. This means that the resumption of the CCER
trading market is imminent. The development and transaction of forestry carbon se-
questration projects in China is expected to usher in a new policy window and a more
mature institutional platform.
3.1.3 the transition of forestry carbon sequestration trading mechanism in
China: from CDM to CCER

From the international climate cooperation mechanism (CDM) to the domestic car-
bon emissions trading mechanism (CCER), although the forestry carbon sequestration
trading mechanism and trading platform have changed, the methodology of the CCER
forestry carbon sequestration project is designed with reference to the tools, methods
and procedures of the CDM forestry carbon sequestration project (afforestation and re-
forestation activities). Therefore, there are not only differences between the two types
of projects, but also many inherent inheritances and connections. First, from the project

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