Page 75 - Research on Financial Development Mechanism and Path of Forestry Carbon Sequestration in Developing Countries under Double Carbon Targets

Chapter 2 Forestry Carbon Sequestration and Carbon Finance

Chapter 2 Forestry Carbon Sequestration

and Carbon Finance

Section 1 Legal System and Guarantee System of For-

estry Carbon Sequestration Transaction

Under the challenge of global warming caused by the rising temperature on the
earth’s surface and the disorder of the climate system, it is extremely urgent to protect
the earth’s ecosystem. As a result of human activities emitting a large amount of green-
house gases such as carbon dioxide, the concentration of gases has been increasing to
saturation, thus causing global warming. Forestry activities can effectively mitigate
global climate change and achieve a safe level of greenhouse gas concentration, mainly
due to the strong carbon sink function of forests in absorbing and fixing carbon diox-
ide. The Clean Development Mechanism (CDM) defined in the Kyoto Protocol has
greatly promoted the value of forest ecological benefits, making forest carbon seques-
tration trading a new type of green financial emission reduction. China attaches great
importance to climate change and actively undertakes the corresponding international
responsibilities. It has carried out the construction of ecological civilization at home
and formulated the goal of “peak carbon dioxide emissions and carbon neutrality”. In
order to win a place in the international carbon market and introduce more funds into
China’s ecological construction, our government has started a series of international
forestry carbon sequestration projects based on CDM since 2001. However, in the prac-
tice of forestry carbon sequestration, due to the lack of perfect legal system, a series of
problems have arisen in the forestry carbon sequestration trading market. In order to
stabilize the market order of forestry carbon sinks and guide the orderly development
of carbon sink trading projects, it is necessary to improve the relevant legal systems so
that this new ecological compensation mechanism can be effectively launched in the
carbon sink trading market.

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