Page 78 - 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

to suit the remedy to the case, unable to effectively regulate the forestry carbon seques-
tration trading market and guide the practice of forestry carbon sequestration trading,
and special legal provisions must be formulated and promulgated as soon as possible to
guide the practice of forestry carbon sequestration trading across the country. Although
Fujian Province, as a pilot, has made great achievements in the development of forestry
carbon sequestration projects, and has successively issued normative legal documents
such as Administrative Measures for the Offset of Carbon Emission Rights in Fujian
Province (for Trial Implementation), Trading Rules for Carbon Emission Rights in Fu-
jian Province (for Trial Implementation) and Pilot Scheme for Forestry Carbon Seques-
tration Trading in Fujian Province, which regulate the forestry carbon sequestration
trading in this province, these provisions are local government regulations with low
level of effectiveness, focusing only on the development of forestry carbon sequestra-
tion projects, and are not systematic. The situation in other pilot provinces and cities
is basically similar, lacking legal norms and constraints in monitoring, trading and su-
pervision of forestry carbon sequestration projects. Based on this, it is very important
and necessary to formulate a special law and regulations covering the whole process of
forest carbon sink project transaction.
1.2.2 The ownership of forest carbon sinks is unclear

When the ecological value of forest carbon sinks is fully exploited to become a
commodity, the relevant rights holders will come to claim their ownership of forest car-
bon sinks. Complex ownership disputes disrupt the original development rhythm of for-
est carbon sinks and even hinder their development. Chapter 2 of the “Forest Law”
defines the content of forest right, including ownership, right of use, right of contract-
ing and right of management, but does not involve the right of carbon sink. Forest car-
bon sink right is the right of the owner to possess, use, benefit and dispose of the forest
carbon sink. China’s “Property Law” does not explicitly mention the correspond-
ing concept. Looking at the national laws, there is no one that clearly stipulates the
ownership of forest carbon sink. In view of the unclear ownership of forest carbon sink,
the forestry carbon sink project will be somewhat restricted when the property rights
are transferred. In practice, when forest rights and forest carbon sequestration rights are
competing or in dispute, they will fall into the dilemma of “no legal basis”. Is it the
property rights of forest carbon sequestration enjoyed by forest owners, or the property
rights of actual contractors or investors who have the right to dispose of such property
rights? Only by clearly defining the ownership of forest carbon sequestration can such

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