1. Forestry carbon sequestration products and their value accounting models under carbon trading mechanism.
- Author
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ZHANG Nan, CHU Anting, and YANG Hongqiang
- Subjects
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CARBON offsetting , *CARBON sequestration , *CARBON sequestration in forests , *VALUE (Economics) , *FORESTS & forestry , *GREENHOUSE gas mitigation - Abstract
The entry of forestry carbon sequestration products into the carbon trading mechanism is conducive to giving full play to the emission reduction function of the forestry ecosystem. Value accounting of forestry carbon sequestration products can endow forestry carbon sequestration with economic value. We review the evolution of emission reduction mechanisms of forestry carbon trading in China and abroad and take forest carbon sequestration products as the research object to analyze the correlation between forestry carbon sequestration products and forestry carbon sequestration projects. Based on the dual benefits of wood and carbon sequestration, this study uses the net present value method to summarize the applicability of three carbon accounting models for forestry carbon sequestration products. We further compare the models on the aspects of carbon price fluctuation response, tree species applicability, and management characteristics of forestry carbon sequestration projects. This study finds that: (1) Forestry carbon sequestration can realize the dual value of climate emission reduction and economic benefits through voluntary carbon emission reduction and mandatory carbon trading mechanisms. However, China's forestry carbon sequestration faces problems such as unclear product definition and mismatch in accounting methodology. (2) The value accounting of forestry carbon sequestration products should be based on the optimal rotation period and 'carbon amount' of forestry carbon sequestration projects. Three types of forestry carbon sequestration products, tCER, lCER, and CCER, are identified based on the time period. tCER and lCER can be used to solve the non-persistence of forestry projects. Through permanent credit and a stable pricing mechanism, CCER can improve the effectiveness of emission reduction of forestry carbon sequestration products. (3) The core value of forestry carbon sequestration products lies in their carbon storage capacity and carbon level. Its value accounting should take ' carbon amount' as the basic premise. Combined with the calculation standards of carbon storage, the carbon accounting models of forestry carbon sequestration products are classified into total carbon model, carbon increment model, and carbon average model. (4) In terms of carbon price fluctuation response, the carbon average model can mitigate the impact of carbon price fluctuation through the whole project. In terms of carbon sink tree species, the total carbon model is suitable for slow-growing tree species, the carbon increment model is suitable for fast-growing tree species, and the carbon average model is more suitable for adjusting tree species selection schemes according to ecological value. In terms of project management characteristics, the carbon increment model is suitable for a long-term management scheme, while the carbon average model can be combined with the historical baseline of the project, making it easier to formulate a reasonable carbon reserve level. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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