Page 51 - Research on Financial Development Mechanism and Path of Forestry Carbon Sequestration in Developing Countries under Double Carbon Targets

Chapter 1 Carbon Asset Management Practice

that enterprises directly or indirectly own in the carbon trading activities and can bring
economic benefits to enterprises, mainly including carbon trading rights, carbon quotas,
low-carbon equipment, low-carbon technologies, forest carbon sinks, low-carbon de-
sign of the Internet, etc. based on the “two carbons” target background.

3.2 Characteristics of Carbon Assets

Carbon assets, as a new form of assets, emerged with the social and economic de-
velopment. It has unique attributes. It is different from other assets and is not a simple
sum of several assets. It is an independent asset with the characteristics of policy, scar-
city, homogeneity, property rights and investment.

3.2.1 Policy

The commodity attribute of carbon assets traded in the market is not inherent, but
stipulated in the Kyoto Protocol and other policies with certain mandatory constraints.
Before the Kyoto Protocol was signed, carbon dioxide, as the main element in green-
house gases and other components in the atmosphere, such as sulfur dioxide and nitro-
gen dioxide, were all harmful gases in the atmosphere. They did not have commodity
trading properties and could not be traded in the market. However, after the signing
of the Kyoto Protocol, the standards and procedures for greenhouse gas emission re-
duction were formulated, the requirements for carbon emission accounting and data
reporting were specified, and the operating mechanism for carbon resource trading was
established. The acquisition of carbon resources is limited and paid. Therefore, carbon
resources gradually have commodity properties, can be traded in the market, and its
value is gradually highlighted. The duration of policies, support and derivative changes
have a significant impact on the value of carbon assets.

3.2.2 Scarcity

Carbon assets, as a new type of resources generated by policy guidance and artifi-
cial regulations, are obviously scarce. With the emergence of global climate problems,
more and more attention has been paid to the emission of greenhouse gases. Carbon
assets have gradually become the focus of social attention. Limited carbon emissions
have gradually become recognized as scarce resources. At present, China’s greenhouse
gas emissions have become a major problem that has plagued economic development.

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