Page 95 - 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

December 2020, the cumulative volume of deliveries was approximately 44.5 billion
tonnes of carbon dioxide equivalent, with a turnover of RMB10.4 billion. In the future,
China’s carbon market will gradually expand its coverage, eventually covering eight
major industries including power generation, petrochemical, chemical, building mate-
rials, iron and steel, non-ferrous metals, paper making and domestic civil aviation. The
total emissions will exceed 5 billion tons. The carbon emissions trading volume in the
“14th Five-Year Plan” period is expected to increase 3 to 4 times on the basis of the
“13th Five-Year Plan” period, and the cumulative trading volume in peak carbon diox-
ide emissions will exceed 100 billion yuan in 2030. At present, China’s carbon market
is mainly conducted by emission control enterprises with real demand for carbon emis-
sions for spot transactions. The main targets of the transactions are carbon emission
quotas (which are mainly distributed free of charge by the state at this stage) and CCER
(voluntary emission reductions certified by the state), with low activity and discontinu-
ous prices. After the national carbon emissions trading market is fully launched, it will
surpass the regional carbon emissions trading markets such as the European Union and
the United States and become the world’s largest carbon emissions trading market sys-
tem based on the quota distribution scale.
2) Innovation of carbon credit financial products
At present, the carbon finance transactions within the territory of our country main-
ly rely on the seven provinces and cities of Beijing, Tianjin, Shanghai, Chongqing,
Hubei, Guangdong and Shenzhen approved by the National Development and Reform
Commission in 2011, as well as the carbon emission trading markets established spon-
taneously in Fujian and Sichuan. According to the latest released data, as of August
2020, the cumulative trading volume in the seven pilot carbon markets across the coun-
try exceeded 400 million tons, and the cumulative trading volume exceeded 9 billion
yuan. According to a series of documents recently released by the Ministry of Ecology
and Environment, the first performance cycle of the first batch of emission control en-
terprises in the national carbon market, namely 2,225 power generation enterprises, has
been officially launched since 2021. Since then, it is expected that the national carbon
market will gradually expand its coverage to key energy consumption industries such as
iron and steel, building materials, nonferrous metals, chemical industry, petrochemical
industry and coal during the “14th Five-Year Plan” period. By then, the key emission
units are expected to reach nearly 10,000,000, and the carbon quota will reach 5 billion
tons, making it the world’s largest carbon emission trading market. As an important
starting point for the marketization of carbon emissions trading, carbon finance has be-

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