Page 94 - 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

Development of international carbon market. As a mainstream carbon pricing
mechanism, the carbon market has been widely recognized at home and abroad, and
countries are developing carbon market construction. The carbon market covers almost
54% of global GDP, but only 23% of greenhouse gas emissions. This is because there
are many kinds of greenhouse gases, and the current carbon trading partner is only for
carbon dioxide emissions. The emission control scale of a carbon market itself refers
to the total carbon emissions covered by the carbon market. In 2021, the carbon market
in China was launched and became the world’s largest carbon market covering carbon
emissions. However, the trading scale of the carbon market in China is far from ade-
quate. Earlier, some media mentioned that China is the world’s largest carbon market,
which is not accurate.
(2) Carbon trading platform
The carbon trading platform is a market-based policy tool for energy conservation
and emission reduction. Its main purpose is to reduce carbon emissions through market
functions, while reducing energy consumption and carbon concentration in the atmo-
sphere. The platform operates on the basis of trading greenhouse gas emission quotas or
credits in the market as commodities. Specifically, companies with emission reduction
needs will receive a certain amount of carbon emission quotas. If companies succeed in
reducing carbon emissions in practice, they can sell the remaining quotas to other com-
panies that need them. Instead, companies that fail to meet their emission targets will
need to buy the quotas they need in the carbon market. Such a mechanism will help
to optimize the industrial structure and energy policies. It is also an important market
mechanism for the global response to climate change and one of the methods advocated
by the Kyoto Protocol.
By the end of 2020, 21 carbon markets were already in operation worldwide, with
total carbon trading volume exceeding 10.3 billion tons and trading volume reaching
229 billion euros, representing a year-on-year increase of nearly 20%. The global car-
bon market recorded a record growth in trading volume for four consecutive years,
with the trading volume in 2020 being five times that in 2017. Among them, EU’s
carbon market turnover exceeded 8 billion tons, accounting for 77% of the total global
trading volume, and is the most important and active carbon market. Global Carbon
Market 2012-2020: Regional Market Transactions and Global Total Transactions Chi-
na’s carbon emissions trading market is currently small in scale. Since June 18, 2013,
when Shenzhen’s carbon emissions trading market was the first to start trading, eight
provinces and cities have participated in the carbon emissions trading pilot. Up to

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