Study On The Financing Mechanism Of Forest Carbon In China

The release of storage of carbon dioxide in forest is caused by energy consumption, deforestation and other activities, resulting in climate change and environmental damage. In order to to promote the sustainable development of ecological services and forest resources, forest carbon actives have been implemented as energy saving & emssion reduction measures to address climate change issues in China. But it has been proved that the measures do not achieve its expected target,which energy saving and ecological environment deterioration are still very prominent.The "carbon" in the forest carbon activities is reconganized as a valuable commodity, but also a trading credit, which forest carbon activities are both carbon production process and the value transformation of carbon product into carbon credits. If the fund mechanism can not only advance the carbon production effectively but also achieve the value transformation, it can promote the goals of forest carbon activities; while are unable to achieve such a transformation may result in the inefficiency and non-persistent of carbon emission reduction. Therefore, in order to expalins that the mechanism of financing to the forest carbon, it is only essenial very necessary to track back to the double character of carbon production and value.Based on the theory of supply of public goods and so on, comparsively anslysis the double character of forest carbon activities and the goals of forest conservation and sustainable management and energy savings in different phases, and the feasibility of the financing mechanism in the phases. Therefore, the research can be conluded as following contents:The ecological projects initiall including forest carbon activities in China is to meet the government's commitment to ecological restoration and protection public demand, which the activities are for more ecological servies not the value of carbon. During this phase defined as the preparatory of the forest carbon activities, the government become the main supplier for public goods such as forest carbon, while the society can participate in voluntarily with the willingness of the public welfare. Thus, financing mechanisms of a government-led and multi-stakeholder involvement is built for forest carbon activities in this phase,which use the financial budget,donations and other means of financing as the supplement the budget of financing. As the demand of ecological products and services is far far greater than the supply provided by government, and the demand of carbon offset is produced by policies and legal constraint for private sector carbon emissions, forest carbon activities need more massive and sustained and stable development to remedy the gap. As the early stage of development of forest carbon, the need of both the carbon product and the value of carbon are required, and led to a multiple government-guided financing mechanisms of forest carbon is need for the purposes by the mixed mode of the Government's policy financing, based-on Carbon Fund.When the scale of forest carbon activities is a stable and sustainable development, and greenhouse gas emissions and other activities are fully regulateded by national or international law and policy regulation, which mean the full development stage of forest carbon. Forest carbon activities are charactered as the realization of carbon value by trade in carbon market in this phase. Therefore, based-market financing mechanisms is established for achieving funding sources with the use of asset securitization or carbon trading.Based on the conlusions aboved, the suggestions are offered to assure and promote the establishment and implementation of these financing mechanisms. Firstly, the declaration of carbon right such as right of ownership of forests and woodlands. Secondly, the apply of subsidies,tax incentives is to encourage society participation, and measurement monitoring, registration(MRV) and registration standards at national level are established and unified, as well as the law of carbon trade. Thirdly, both the system of carbon finance and carbon exchange platform at the national level should be bulid and improved, so as to create the basic condition of realization of value of forest carbon. Finally, the rules or policies should be taken to fairly allocate the income and share to promote the goals of forest conservation,sustainable management and energy conservation.