Page 90 - 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

period, large capital demand, slow return and unstable investment income of forestry
carbon sequestration projects. China’s forestry carbon sequestration bonds are very
suitable for raising funds for forestry carbon sequestration projects. One of the more
successful bonds with similar nature in the world is the Green Bond issued by the
World Bank. The funds raised by the bonds are invested in carbon emission reduction
projects. Based on the characteristics of forestry carbon sequestration projects, the op-
eration mode of forestry carbon sequestration bonds is designed as follows: the govern-
ment or policy banks are used as guarantee at the beginning of the implementation of
the project, the forest management entity borrows funds from banks and other financial
institutions to start the project, after a certain period of carbon sequestration accumu-
lation and expected revenue, the forest management entity issues forestry carbon se-
questration bonds to the whole society, the funds raised are used to repay the funds bor-
rowed in the early period and interest, and the rest is used to support the operation of
forestry carbon sequestration projects. After the forestry carbon sequestration projects
are successfully traded, the principal and interest are repaid to investors.
3) Launching forestry carbon sequestration lottery
The lottery has the public welfare nature, it has strong attraction to the public with
the characteristics of small and broad, has great fund-raising potential, does not need
to repay the principal and interest, has small financing risk, and is very suitable for
absorbing idle funds and promoting the development of public welfare undertakings.
Judging from the limitations of national finance and market supply of ecological prod-
ucts, ecological lottery can promote the supply of ecological products. There has been a
precedent of issuing low-carbon environmental protection lottery tickets in Britain. In-
formation shows that China’s lottery market has a large space for development and the
public has a strong purchasing power. With the improvement of people’s living stan-
dard and cultural quality, the public’s awareness of low carbon has also been enhanced
in recent years. Their enthusiasm for purchasing forest carbon sequestration lottery
tickets may even exceed that of sports lottery tickets and welfare lottery tickets. There-
fore, forest carbon sequestration lottery tickets have great potential in innovative ways
of financing forest carbon sequestration. Specific reference can be made to the current
operation mode of lottery, which is managed and supervised by the national govern-
ment to control the relevant quota and winning rate.
2.3.3 clear forest carbon sink property rights

In view of the uncertainty of forestry carbon sequestration property right in China,

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