By Liu Jianxiong, Li Xianjun & Zhang Liang, Research Team on “Value Assessment and Management Mode of Carbon Sequestration in China’s Ecological Function Areas”, Research Department of Social Development, DRC

Research Report, Special Issue, No.7, 2017 (Total 1531) 2017-03-21

Abstract: Rich experience has been gained in developed countries in carbon sequestration value management, which has enriched ways for sustainable development and served as good reference to China in building ecological function areas. Meanwhile, the global and regional environmental cooperation system has created conditions to the formation and operation of a carbon sequestration transaction market. In the framework of the Kyoto Protocol, various countries have chosen different transaction models for joint operation, and these trading cases have illustrated how to put into effect carbon sequestration value. The multi-level carbon sequestration transaction market constructed between various countries and regions has offered a sound transaction platform for realizing carbon sequestration value. Relevant countries are making pilot practice for further integration between financial innovation and carbon sequestration transaction, and their efforts have created a new channel for realizing carbon sequestration value and warding off transaction risks. Besides, in the process of carbon sequestration value management, related international organizations and relevant countries have combined carbon sequestration transaction with ecological compensation for win-win results through the realization of carbon sequestration value.

Key words: carbon finance, cooperation mechanism, transaction market, ecological compensation