Page 83 - 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

carbon sequestration market generally adopts a voluntary emission reduction trading
model. Under this trading model, trading behavior is mostly non-standard and trading
records cannot be found in the market. Carbon sequestration value is extremely easy
to become an appendage of the transaction. In order to create a clear market trading
environment, we must rely on a strong legal supervision system. Information disclo-
sure system is an important part of it. All important links involved in forestry carbon
sequestration trading and the key content of carbon sequestration projects must disclose
relevant information to ensure the fairness and justice of forestry carbon sequestration
trading and realize the value of forestry carbon sequestration.
1.3.5 Clarify the legal responsibilities of forestry carbon sequestration transac-
tions

Forestry carbon sink transaction involves civil liability, criminal liability and ad-
ministrative liability. In the process of forestry carbon sequestration trading, a carbon
sequestration trading contract should be concluded in accordance with the provisions of
the “Contract Law”, and the contract should specify the default matters and loss com-
pensation, etc. Once a default event occurs, civil liabilities such as liability for breach
of contract should be borne. For illegal fund-raising, pyramid selling, gambling, con-
tract fraud and money laundering by using carbon sinks, criminal responsibilities shall
be investigated in accordance with the relevant provisions of the Criminal Law. When
there are problems in the review and supervision of forestry carbon sequestration trans-
actions by administrative bodies such as the competent forestry authorities and regula-
tory agencies, or administrative violations arise from improper exercise of administra-
tive power, they shall bear corresponding administrative responsibilities.
As an important driving force for China’s forestry development, forestry carbon
sink can not only absorb and fix greenhouse gases such as carbon dioxide in the at-
mosphere, alleviate the global warming, assume the international emission reduction
responsibility, but also help China’s ecological civilization construction, and promote
land greening. Of course, the benefits brought by the forest system are not only to re-
duce emissions and increase sinks, but also to promote afforestation. Behind the forest-
ry carbon sequestration projects are significant meanings such as livelihood improve-
ment, community poverty alleviation, rural revitalization, women’s employment and
biodiversity protection. The forestry carbon sequestration transaction has also played a
landmark role in promoting the marketization of ecological services and establishing a
new ecological financing mechanism. This new thing has been groping and developing

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