Abstract
This chapter analyses a green platform for a pilot transaction of China forest carbon sinks led by the Huadong Forestry Exchange in the context of a platform, demand, supply, pricing mechanism, purchase agreements and transaction products with the focus on its financing mechanism, known as China Green Carbon Fund. The chapter highlights key areas of challenges and implications that need to be addressed to continue program development of forest carbon sink projects with the support of financing mechanisms. This study provides possible implications for other provinces or municipalities at a local level in China and other developing countries preparing for, or in the process of, facilitating trading platforms for forest carbon sinks at a national level. This chapter also provides a comparison of the development of voluntary forestry carbon sinks in Yunnan and Zhejiang Provinces. It draws comparisons from four viewpoints: regional financial support, development of organisations, talent development, and exchange of experience. Finally, it concludes that capabilities of forestry resources appraisal should be improved, financial support and experience exchange strengthened, and carbon credit trading strongly promoted.
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Notes
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In 1995, countries launched negotiations to strengthen the global response to climate change and two years later adopted the Kyoto Protocol, which came into effect in February 2005 and offers three flexible mechanisms, namely Emissions Trading, Joint Implementation (JI) and CDM.
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China National Forestry Government Website, http://www.forestry.gov.cn/portal/main/s/201/content-495069.html
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China Green Carbon Fund can be deposited in the interests that financial institutions charge and can also be an effective way to purchase securities, etc., to promote their safety and increase the value. The value-added incomes are still included in the fund in order to carry out activities related to the project.
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Note: Newspaper and magazine articles quoted in the footnotes are not included here.
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Zhu, Y. et al. (2015). Market-Based Financing Mechanism and Design of Voluntary Trading Platform for China Forest Carbon Sinks. In: Transforming Rural Communities in China and Beyond. Springer, Cham. https://doi.org/10.1007/978-3-319-11319-7_3
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