Page 185 - 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

egy”, which proposes to establish a market-oriented diversified ecological compensa-
tion mechanism, such as improving the horizontal ecological protection compensation
mechanism between regions and upstream and downstream river basins, and exploring
the establishment of market-oriented compensation systems such as purchase of eco-
logical products and forest carbon sinks; The third is the guiding document for poverty
alleviation issued by the Ministry of ecological environment, “guiding opinions on how
ecological environment protection can help win the battle for precision poverty allevi-
ation”, which proposes to “expand the scope of compensation for horizontal ecological
protection among regional watersheds” and “encourage key emission units included in
the carbon market to give priority to purchasing forestry carbon sinks in poor areas”.
In particular, the “double carbon” target for 2020 has raised the role of forestry carbon
sequestration capacity building in the implementation of the “double carbon” target to
a new height. Since then, the Central Committee of the Communist Party of China and
the State Council’s Opinions on Completely and Accurately Implementing the New
Development Concept and Doing Well in peak carbon dioxide emissions’s Carbon
Neutralization Work have proposed to continuously consolidate and enhance the carbon
sink capacity. The peak carbon dioxide emissions Action Plan for the Year 2030 explic-
itly deploys “peak carbon dioxide emissions’s Ten Major Actions” such as actions to
consolidate and enhance the carbon sink capacity.
It can be seen that the practice of forestry carbon sequestration trading in China has
evolved from the single objective of initially dealing with climate change to the multi-
ple objectives of giving consideration to poverty alleviation, ecological compensation
and realization of the value of ecological products. It has evolved from the original
international cooperation project led by the National Development and Reform Com-
mission to a policy tool for cross-sectoral comprehensive coordination of ecological
civilization construction. Through the policy development and system construction in
this process, the enhancement of carbon sink capacity has become an important part of
ecological construction in China. This not only reflects the institutional advantages of
China’s ecological modernization, but also is a distinctive feature of China’s forestry
carbon sequestration trading mechanism, which is different from international forestry
carbon sequestration trading. However, at present, forestry carbon sequestration trading
in China still mainly follows the methodology and evaluation system of international
forestry carbon sequestration trading. Therefore, how to explore the forestry carbon se-
questration trading rules with China characteristics in combination with the ecological
construction process in China is an urgent issue to be solved.

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