Page 86 - 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

2.2 China’s forestry carbon sequestration financing con-
straints

2.2.1 No national trading market has been formed

At the end of 2017, a national carbon trading system was established in China, but
at present only the power generation industry is included in the system. Forestry carbon
sinks have not been traded nationwide, but only in a small number of carbon pilot cities
and regions with abundant forest resources where local governments attach importance
to the development of forestry carbon sinks. These transactions are quite different in the
measurement of carbon sink, determination of carbon sink price and implementation
details of carbon sink projects, which not only bring inconvenience to cross-regional
transactions, but also are not conducive to the allocation of forestry carbon sink re-
sources. In addition, the lack of a national trading market leads to the imperfect pricing
mechanism of forestry carbon sinks, and the unreasonable price will lead to the double
cooling of supply and demand, which is more unfavorable to the development of for-
estry carbon sinks.

2.2.2 forestry carbon sink property rights are not clear

First of all, the ownership of forest land in our country is not clear. The forms of
forest land ownership include state ownership and collective ownership, while the right
to use forest land has four forms: state use, collective use, legal person use and natural
person use. Therefore, the circulation of forest land is greatly restricted. In addition,
forest ownership and forest ownership are also separated. Forest ownership may be-
long to forest owners or forest users, or it may belong to other subjects besides the two.
However, the property right of forestry carbon sink falls within the category of forest
ownership, and it is difficult to define the property right owner. In addition, China’s
laws stipulate that the owners of forest property rights do not enjoy the complete right
to dispose of forest resources, and the handling of forest resources requires the approv-
al of government departments at various levels. All these will inhibit the enthusiasm of
forest carbon sink supply.
2.2.3 the absence of risk management system

Forestry carbon sequestration projects are faced with various natural risks and man-
made risks in the management process. Among them, natural risks are unpredictable

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