Page 99 - 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

course, and there are still some difficult problems in the tax practice. It is suggested to
establish a team of skilled and operational professionals as soon as possible to form
standards for measurement and monitoring of forestry carbon sequestration, validation
and certification by third parties, and policy formulation, so as to ensure the normal
operation of forestry carbon sequestration trading projects and make tax collection and
management easier.
2) Formulation and improvement of carbon trading regulations
The carbon trading market is a market in which carbon emission rights and inter-
ests are traded, the subject of which is mainly carbon emission quotas. Carbon quotas
are mainly targeted at high-emission enterprises. The government allocates carbon
emission quotas to high-emission enterprises based on their carbon emissions. Sur-
plus carbon emission quotas can be circulated among high-emission enterprises as
commodities, thus realizing the reasonable allocation of carbon emission quotas and
encouraging high-emission enterprises to reduce emissions. According to the Measures
for the Administration of Carbon Emissions Trading (for Trial Implementation), the
main carbon market has several “detailed rules”: the carbon market MRV mechanism
(a system in which greenhouse gas emissions can be monitored, reported and verified),
the national carbon trading market quota allocation plan, the national carbon emissions
registration management rules (for Trial Implementation), the carbon emissions trading
management rules (for Trial Implementation) and the carbon emissions settlement man-
agement rules (for Trial Implementation).
Some carbon trading markets also include nationally certified voluntary emission
reductions (CCER). Certified emission reductions are mainly targeted at low-emission
enterprises. Low-carbon enterprises obtain certified emission reductions by submitting
voluntary emission reduction projects to relevant authorities and carrying out quanti-
tative verification of emission reduction effects. Under the linkage of the quota market
and the voluntary emission reduction market, CERs can also be used as transaction tar-
gets in the carbon market, and emission control enterprises can directly purchase CERs
in the carbon market to offset carbon quotas. As a supplementary mechanism to the car-
bon market, the “Detailed Rules” for the implementation of the CCER comply with the
“Measures for the Administration of Voluntary Greenhouse Gas Emission Reduction
Transactions (Trial)”.
The Provisional Regulations on the Administration of Carbon Emissions Trading
(Draft) have been issued to provide uniform provisions on the coverage of the carbon
emissions trading market, the determination of key emission units, the allocation of

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