Page 79 - 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

disputes be resolved from the source, thus improving the efficiency of resource alloca-
tion and promoting the development of forest carbon sequestration transactions.
1.2.3 Forest carbon sequestration measurement and monitoring system needs
to be improved

Scientific measurement and monitoring of forest carbon sinks is the basis of carbon
sink trading, and a perfect measurement and monitoring system of forest carbon sinks
is an important factor to ensure the development of carbon sink trading market. There
are various measurement methods of forest carbon sink, including “simple operation,
economical application but not accurate enough” sample survey method, and “complex
measurement, expensive instruments but accurate results” micrometeorology method.
Different measurement methods will have different results due to different measure-
ment standards. At present, a unified measurement method of forest carbon sink has not
been established in China, and it is difficult to carry out the measurement and monitor-
ing of forest carbon sink efficiently. China’s forest carbon sequestration measurement
and monitoring lack of unified and authoritative norms and regulations, and lack of
constraints of relevant laws and regulations, which directly affect the forest carbon se-
questration trading process and its authority.

1.2.4 the forestry carbon sequestration trading regulatory system is chaotic

1) Lack of legal supervision system of forest carbon sink trading market
The development prospect of China’s forestry carbon sequestration trade is very
promising. It can not only improve the ecological environment, but also bring certain
economic benefits. As the key of carbon sink projects, carbon emission monitoring,
reporting and verification system (MRV) is an important regulatory system. However,
this system neither brings the reporting link into the scope of information disclosure,
nor clearly stipulates the supervision link. In the process of project implementation, ir-
regularities will breed and disrupt the market order. As a result, loopholes or deviations
will appear in government supervision, making it difficult to form a “closed loop”. In
order to ensure the self-discipline of the market industry, it is necessary to carry out
strict inspection and control through legal means and create a healthy carbon sink trad-
ing market environment.
2) The regulatory body of forestry carbon sink transaction is complex
In 2003, China established a carbon sequestration management office under the
State Forestry Administration, which is responsible for policy formulation and unified

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