Page 77 - 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

make money by using the concept of carbon sequestration. However, what they have
done has nothing to do with carbon sequestration, and even provides wrong and false
information. In the absence of legal supervision, they took the opportunity to confuse
the public with the wrong concepts of “carbon sink forest nursery stock” and “carbon
sink forest species”, with the intention of causing the public to have a wrong under-
standing in order to seek benefits from them. What’s more, they used illegal carbon
sink fund raising, pyramid selling and gambling, which seriously disrupted the order of
carbon sink trading market.

1.2 the forestry carbon sequestration trading laws and regu-
lations are insufficient

1.2.1 the laws and regulations are not perfect

At present, China’s forestry carbon sequestration trade has achieved good results
in the active attempts and explorations of major pilot projects. Among them, Fujian
Province not only leads in the development and development of carbon sequestration
projects, but also leads in the formulation of normative legal documents. However,
while paying attention to the achievements, it should be noted that at present there is no
specific law and regulations on forest carbon sequestration trading in the country. The
recently issued Administrative Measures on Carbon Emissions Trading (Trial) is only
a departmental regulation formulated by the Ministry of Ecological Environment. At
present, domestic forestry carbon sequestration transactions are also conducted under
the guidance of departmental regulations such as the Measures for the Operation and
Management of Clean Development Mechanism Projects and the Interim Measures for
the Administration of Voluntary Greenhouse Gas Emission Reduction Transactions. The
effectiveness level of forestry carbon sequestration related normative legal documents
is low, and various legal provisions that have been issued are vague and scattered. Most
of them are guided in principle and lack pertinence.
In addition, forestry carbon sequestration transaction covers the whole process of
forestry carbon sequestration projects from development, filing, monitoring, certifica-
tion, issuance to transaction success. The whole process is complicated and lengthy. It
cannot be simply regarded as “CER transaction” and the quota transaction rules are ful-
ly applicable. Therefore, the existing normative legal documents are too general, unable

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