Page 91 - 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

it is suggested to use legal mechanism to coordinate. First of all, we should establish
and perfect the legal system of forestry carbon sequestration property rights, and de-
termine the ownership of forestry carbon sequestration through legal form; Secondly,
the registration system of forest land and forestry property rights should be strictly
regulated, the forestry carbon sequestration property rights definition certificate should
be issued for the registered forestry property rights, and the transfer and change of for-
estry carbon sequestration property rights should be subject to relevant certification,
so as to effectively safeguard the interests of the property rights subject and stimulate
the supply of forestry carbon sequestration. In addition, efforts should be made to train
talents who are proficient in forestry carbon sequestration laws and regulations, and set
up relevant arbitration or dispute mediation institutions to protect the clarity of forestry
carbon sequestration property rights.

2.3.4 to improve the forestry carbon sink project risk prevention mechanism

Forestry carbon sink projects are extremely vulnerable to natural risks and human
activities in the implementation process, which leads to a high risk level of forestry car-
bon sink projects, brings great uncertainty to the expected revenue of forestry carbon
sink projects, and is not conducive to the development of forestry carbon sink financing
activities. Therefore, improving the risk prevention mechanism of forestry carbon se-
questration projects is beneficial to improving the solvency of the project subject, stim-
ulating the investment willingness of investors and alleviating the financing dilemma
of forestry carbon sequestration projects to a certain extent. We can strengthen the risk
prevention from the following aspects:
1) Establish a forestry carbon sequestration insurance system
The implementation period of forestry carbon sequestration projects is long, and
during this period, natural disasters such as lightning, earthquake, plant diseases and
insect pests, snow disaster, flood and flood will inevitably occur. These natural disasters
are unforeseeable and irresistible. They will threaten the continued implementation of
forestry carbon sequestration projects at any time, and even cause huge losses to project
investors and project implementers. It is necessary to establish a sound insurance sys-
tem to provide certain economic compensation to forestry producers in the event of di-
sasters, so as to help them resume production as soon as possible after disasters, reduce
the investment and financing risks of forestry carbon sequestration projects, and also
help to improve the confidence of financial institutions in carbon sequestration projects.
In view of the public nature of forest resources, it is necessary to increase financial allo-

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