Forestry carbon sink
International Carbon Sequestration Policy
Current events in the carbon sink industry
《United Nations Framework Convention on Climate Change》
•The ultimate goal is to maintain the concentration of greenhouse gases in the atmosphere at a stable level, at which human activities will not cause dangerous disturbances to the climate system
•Clearly define the obligation of developed countries to take the lead in reducing emissions and providing financial and technological support to developing countries
《Kyoto Protocol》
• For the first time in human history, greenhouse gas emissions are restricted in the form of regulations
• Developed countries have been obligated to reduce carbon emissions since 2005, while developing countries have been obligated to reduce emissions since 2012
• Two developed countries can engage in "emission trading" where emission quotas can be bought and sold. In other words, countries that find it difficult to complete their reduction targets can spend money to buy excess quotas from countries that exceed their targets
• Calculate greenhouse gas emissions based on "net emissions", which means deducting the amount of carbon dioxide absorbed by forests from the actual emissions of the country
• Make arrangements for global action to address climate change after 2020
• Control the global average temperature rise within 2 degrees Celsius compared to the pre industrial period, and strive to limit the temperature rise within 1.5 degrees Celsius. This is the third milestone international legal text in human history to address climate change, forming a global climate governance pattern after 2020
• Developed countries such as Europe and America continue to take the lead in reducing emissions and implementing absolute quantitative emission reductions, providing financial support to developing countries
• Establish a complete, transparent operation and open transparency mechanism for the Nationally Determined Contributions (INDC) mechanism, funding mechanism, sustainability mechanism (market mechanism), etc. to promote their implementation
• In August 2005, Xi Jinping, the then Secretary of the Zhejiang Provincial Party Committee, made a scientific statement during his inspection in Anji, Huzhou, Zhejiang that "green mountains and clear waters are as valuable as mountains of gold and silver".
• On June 18, 2013, the first domestic carbon emission trading platform was launched in Shenzhen. Since then, Beijing, Tianjin, Shanghai, Guangdong, Hubei, Chongqing and other provinces and cities have successively launched carbon emission trading pilot projects. China's carbon trading market is also divided into two parts, namely mandatory quota trading and voluntary China Certified Voluntary Emission Reduction (CCER) trading
• On November 30, 2015, Xi Jinping delivered an important speech at the Paris Climate Conference, mentioning the construction of a low-carbon energy system, the development of green buildings and low-carbon transportation, and the establishment of a national carbon emissions trading market
• On January 11, 2016, the first phase of the national carbon emissions trading market will cover key emission industries such as petrochemicals, chemicals, building materials, steel, non-ferrous metals, papermaking, electricity, and aviation
• On October 18, 2017, Xi Jinping stated in the report of the 19th National Congress that we must adhere to the harmonious coexistence between humans and nature. We must establish and practice the concept that green mountains and clear waters are as valuable as mountains of gold and silver, and adhere to the basic national policy of conserving resources and protecting the environment
• On December 19, 2017, the National Development and Reform Commission held a teleconference to deploy the implementation of the "National Carbon Emission Trading Market Construction Plan (Power Generation Industry)", and the national carbon emission trading system was officially launched
• In April 2018, the International Maritime Organization (IMO) adopted a preliminary strategy for reducing greenhouse gas emissions in international maritime transport. Intended to promote the international shipping industry to reduce emissions as soon as possible and achieve zero greenhouse gas emissions within this century, consistent with the temperature control targets set by the Paris Agreement on climate change, and contribute to the global response to climate change
• On September 5, 2018, the National Carbon Emission Trading Market Mobilization and Deployment Meeting was held to accelerate the establishment and improvement of the national carbon market system; Accelerate the construction of national carbon market infrastructure
• On September 23, 2019, Wang Yi, the Xi Jinping Special Representative, State Councilor, and Minister of Foreign Affairs, attended the United Nations Climate Action Summit at the United Nations headquarters in New York and delivered a speech. China will conscientiously fulfill its obligations under the United Nations Framework Convention on Climate Change and the Paris Agreement
• On March 30, 2020, Xi Jinping went to Yucun, Zhejiang for inspection; On April 1st, after listening to the report, it was pointed out that we should practice the development concept of "green mountains and clear waters are as valuable as mountains of gold and silver"
• On March 13, 2020, the Council of the International Civil Aviation Organization (ICAO) approved the emission reduction standards for six eligible international aviation carbon offset reduction plans, including China's voluntary greenhouse gas reduction plan and the Verification Carbon Standard Procedure (VCS)
• On May 12, 2020, the National Carbon Emission Registration System and Trading System Construction Plan Expert Demonstration Meeting was held, with the Hubei Provincial People's Government and the Shanghai Municipal People's Government respectively leading the construction and operation of the two systems
• In February 2021, Minister of Ecology and Environment Huang Runqiu: Ensure the launch of nationwide trading before the end of June
• On March 15, 2021, Xi Jinping presided over the 9th meeting of the Central Committee for Finance and Economics, emphasizing the integration of carbon peak and carbon neutrality into the overall layout of ecological civilization construction
Forestry carbon sink refers to the process, activity or mechanism of utilizing the carbon storage function of forests to absorb and fix carbon dioxide from the atmosphere through afforestation, strengthening forest management, reducing deforestation, protecting and restoring forest vegetation, and combining it with carbon trading according to relevant rules. It is an internationally recognized effective way to indirectly reduce emissions, which can be simply described as making the carbon sequestration capacity of forests a commodity that can be traded like ordinary commodities.
Carbon peak：Refers to the historical turning point in which the annual carbon dioxide emissions of a certain region or industry reach the highest value in history, and then experience a plateau period and enter a continuous decline, which is the turning point in the history of carbon dioxide emissions from increase to decrease
Carbon Neutrality：Refers to the direct and indirect carbon dioxide emissions from human activities in a certain region over a certain period of time, which offset the carbon dioxide absorbed through afforestation and other means, achieving "net zero carbon dioxide emissions"
China's Roadmap to Achieve Carbon Neutrality by 2060
• From 2021 to 2030, achieve peak carbon emissions
• From 2031 to 2045, rapidly reduce carbon emissions
• From 2046 to 2060, deep decarbonization will be achieved to achieve carbon neutrality
Commercial Value：Based on a 20-year emission reduction period and an average carbon price prediction of 100 yuan/ton, with an estimated carbon yield of 0.5 tons per mu per year, the annual income per mu can be about 50 yuan. If 10 million mu is used, the annual income can be 500 million yuan. The final result shall be based on the real-time actual transaction price.
Implementation：The company plans to establish a carbon sequestration measurement area of over 10 million acres within three years, based on its own 2.58 million acres of economic grassland under the forest, and collaborating with larger forest farms, forestry bases, and other units across the country.
Domestic policies on carbon sequestration
• On June 13, 2012, the National Development and Reform Commission issued the "Interim Measures for the Administration of Voluntary Greenhouse Gas Emission Reduction Trading" (NDRC Climate [2012] No. 1668). Clarified the methods for the approval, verification, filing, trading, and management of voluntary greenhouse gas emission reductions
• On April 29, 2014, the State Forestry Administration issued the "Guiding Opinions on Promoting Forestry Carbon Trading Work" (Linzaofa [2014] No. 55), aiming to focus on exploring forestry carbon trading under carbon emission trading
• On January 11, 2016, the General Office of the National Development and Reform Commission issued a notice on effectively carrying out the key work of launching the national carbon emission trading market (NDRC Climate [2016] No. 57)
• On April 28, 2016, the State Council issued the "Opinions of the General Office of the State Council on Improving the Ecological Protection Compensation Mechanism" (National Measures (2016) No. 31)
• On October 27, 2016, the State Council issued the "13th Five Year Plan for Controlling Greenhouse Gas Emissions" (Guofa [2016] No. 61), which clearly stated the establishment of a national carbon trading market system; Launch and operate the national carbon emission trading market
• On July 20, 2017, the Office of the State Forestry Administration issued the "Provincial Forestry Response to Climate Change 2017-2018 Work Plan" (Ban Zaozi [2017] No. 125), which clearly stated the need to "fully promote carbon trading"
• On December 19, 2017, the National Development and Reform Commission issued the "National Carbon Emission Trading Market Construction Plan (Power Generation Industry)" [NDRC Climate Regulation [2017] No. 2191], marking the completion of the overall design of China's carbon emission trading system and its official launch
• On May 8, 2018, the National Forestry and Grassland Administration proposed the "Opinions of the Forestry and Grassland Administration on Further Releasing Collective Forest Management Rights" (Lin Gai Fa [2018] No. 47), actively developing forest carbon sinks and exploring the promotion of forest carbon sinks entering the carbon trading market
• On November 21, 2018, the State Forestry and Grassland Administration issued a notice on the "2017 White Paper on Policies and Actions for Forestry and Grassland to Address Climate Change" (Ban Sheng Zi [2018] No. 186)
• On December 28, 2018, nine ministries including the National Development and Reform Commission, the Ministry of Finance, and the Forestry and Grassland Administration issued a notice on the "Action Plan for Establishing a Marketized and Diversified Ecological Protection Compensation Mechanism" (NDRC West [2018] No. 1960), firmly establishing and practicing the concept that "green mountains and clear waters are as valuable as mountains of gold and silver"; Clearly state that "forestry greenhouse gas voluntary emission reduction projects with multiple ecological, social, and other benefits will be prioritized for inclusion in the national carbon emission trading market
• On March 29, 2019, the "Interim Regulations on the Management of Carbon Emission Trading (Draft for Comments)"
• On December 30, 2020, the General Office of the Ministry of Ecology and Environment issued a notice on the implementation plan for setting and allocating the total amount of national carbon emission trading quotas for 2019-2020 (power generation industry) and the list of key emission units included in the management of national carbon emission trading quotas for 2019-2020, and the pre allocation of quotas for the power generation industry
• On January 11, 2021, the General Office of the Ministry of Ecology and Environment issued the "Guiding Opinions on Coordinating and Strengthening the Work Related to Climate Change and Ecological Environment Protection"
• The "Management Measures for Carbon Emission Trading (Trial)" will be implemented from February 1, 2021
• On March 30, 2021, the "Interim Regulations on the Administration of Carbon Emission Trading (Revised Draft)" were publicly solicited
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