Page 54 - 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

the enterprises in the market can only reduce their production and operation activities
to a certain extent while reducing their scale and losses. This results in a decrease in the
demand for greenhouse gas emissions from the enterprises and an oversupply, which
leads to a drop in the price of carbon assets.
The second is the government control factor. The operating mechanism of the car-
bon trading market lies in the standardized market trading policies and corresponding
rules and requirements. The government’s policy control on carbon asset transactions
has an important impact on the value of carbon assets. China’s carbon trading market,
combined with the characteristics of different provinces and the actual situation, the
government has carried out pilot operation, and given a certain degree of policy sup-
port. With the prominence of the importance of carbon assets, corporate development
strategies are also affected by government policies. However, at present, companies
trading in the carbon market lack standardized and unified industry guidance, and the
penalties for problems are also low. Enterprises operating in an irregular situation will
affect the price fluctuations of carbon assets, causing confusion in the carbon market.
Third, industrial structure. The industrial structure of our country is divided into the
primary industry, the secondary industry and the tertiary industry. Under the same con-
ditions, the secondary industry has greater carbon emission intensity and demand, and
emits more carbon dioxide under the same output value. China is vigorously develop-
ing the secondary industry. Due to the large difference in industrial structure among dif-
ferent regions, the overall carbon emissions are different and the value of carbon assets
is different. For the tertiary industry, the average profit level of the whole enterprise is
high, which results in a relatively high value of carbon assets.
Fourth, energy structure. In the current human society, energy provides an import-
ant source of power for social production and residents’ lives. Although there are many
kinds of energy that human beings can choose, most of the energy consumption needs
to be accompanied by the release of carbon dioxide, only because the difference in car-
bon content in the energy structure results in the difference in the amount of carbon di-
oxide generated from the same amount of energy. Subjectively, the choice of traditional
energy or clean energy has an important impact on the value of carbon assets. From an
objective point of view, if there is a big difference in energy price changes, for the sake
of cost-effectiveness, enterprises will still choose the energy with lower price but higher
carbon emission. Therefore, it is the energy structure and energy price choices that have
a greater impact on the value of carbon assets.

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