Page 76 - 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

1.1 Current Status of Forestry Carbon Sequestration Trans-
actions

Carbon sink refers to the process, activity or mechanism of absorbing carbon diox-
ide in the atmosphere and reducing the concentration of greenhouse gases in the atmo-
sphere through afforestation, vegetation restoration and other measures. Forest carbon
sink is a process in which forest plants absorb carbon dioxide in the atmosphere and
fix it in vegetation or soil, so as to reduce the concentration of carbon dioxide in the
atmosphere. Forest carbon sink is a process in which forest management activities par-
ticipate in carbon sink transactions, including forest management carbon sink and affor-
estation carbon sink. Carbon sequestration trading is a trading activity of carbon emis-
sion rights or carbon emission spaces carried out by trading parties in accordance with
relevant rules, aiming at reducing carbon emissions and coping with climate change.
According to the Interim Measures for the Administration of Voluntary Greenhouse
Gas Emission Reduction Transactions issued by the National Development and Reform
Commission, the market transactions can only be carried out if the State Certified Vol-
untary Emission Reduction (CCER) is filed and registered in the national registration
system. The forestry carbon sequestration project is only one type of transaction, and
there are other emission reduction projects from 15 professional fields such as manu-
facturing, chemical industry, energy industry, construction and transportation.
The whole world is actively taking measures to deal with climate change, and
China is also taking part in it, shouldering its international responsibilities, putting for-
estry at an important height in China’s efforts to deal with climate change, and starting
the national carbon sink market, which will provide an effective market approach for
forestry to help realize the “change from green mountain to golden mountain”. As an
important component of the CCER, forestry carbon sequestration has become the most
widely accepted key carbon sequestration project in the eight national carbon trading
pilot projects of “three provinces and five cities” and is also one of the types of carbon
sequestration projects strongly supported by the state. Under the guidance of the na-
tional policy of “realizing peak carbon dioxide emissions and carbon neutrality as soon
as possible”, the whole country is vigorously carrying out the practice of carbon reduc-
tion to promote the transformation of economic and social development to green. The
practice of forestry carbon sequestration trading is not smooth sailing either. Since the
concept of carbon sequestration trading was introduced into China, some people have
started to think wrongly and quickly set up forestry carbon sequestration companies to

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