Page 80 - 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

management of forestry carbon sequestration projects. In 2017, due to the development
of the national carbon sink market, the National Development and Reform Commission
shouldered the heavy responsibility of verifying emission reductions and supervising
carbon sink transactions. According to the “Guidance on Promoting Forestry Carbon
Sequestration Transactions” issued in 2014, the provincial forestry authorities and
carbon sequestration management offices have the right to supervise the controversial
issues of carbon sequestration transactions and forest right transfer. As a financial trans-
action means, the price mechanism of carbon sequestration transactions will be super-
vised by the Price Bureau and the CSRC. Too many regulatory bodies and the inability
to coordinate lead to power rent-seeking, which in turn leads to inefficient forestry car-
bon sequestration transactions.
3) Forestry carbon sequestration transaction supervision functions cross
The National Development and Reform Commission is responsible for the emis-
sion reduction certification, review and supervision of carbon sink projects. However,
the competent forestry authorities at all levels are also responsible for the review of
the qualification of the trading entities of forestry carbon sink projects. When there is
a problem of forest right transfer and a dispute over the ownership of carbon sink, the
various regulatory entities will pass the buck to each other due to the overlapping of
their functions, resulting in the problem not being dealt with in a timely and effective
manner. In terms of price supervision, the financial supervision institution will strictly
control the carbon sequestration trading process to avoid illegal acts such as “money
laundering”. At the same time, the Price Bureau will also supervise this according to
the “Rules for Determining Forest Prices”. Repeated supervision functions among var-
ious departments will only complicate carbon sequestration trading and reduce the effi-
ciency of forestry carbon sequestration trading.

1.3 the path to improve the legal system of forestry carbon se-
questration transactions

1.3.1 Formulating special laws and regulations

If we want our forestry carbon sink industry to develop for a long time, we must
rely on legal protection. Although the state has actively taken measures to implement
the Measures for the Administration of Carbon Emissions Trading (for Trial Implemen-

66