Research On Forest Carbon Financing Models

Forest carbon sink is formed when forest absorbs and fixes carbon dioxide in vegetation or soil in the carbon cycle. For a long time, the forest carbon sink has been shared for free as a kind of public goods. After the signing of the “Kyoto Protocol”, the economic value of forest carbon has been recognized by the international community. Through the cooperation project and market transactions, the international forest carbon market is gradually formed, forest carbon financing behavior has emerged and formed some financing mode. Forest carbon financing will help broaden the financing channels, active forestry market improve forestry financing environment. Study on its financing model can provide the oretical direction and reference to China’s forest carbon market.This paper defines the forest carbon financing, analyzes the development status of domestic and international forest carbon market, and expounds the existing financing model and discusses the innovation model. Then this paper discusses how to choose the forest carbon financing model and design the implementation procedure of forest carbon sinks mortgage model by taking the Ningdong Forestry Bureau of Shaan xi Province as an example.Finally,this paper puts forward some countermeasures and suggestions on the development of China’s forest carbon financing model.It is necessary to konw the existing financing model and discuss the possible future financing model to improve forest carbon financing. According to the current development of domestic and international forest carbon market, this paper presents three existing financing models: government financing, voluntary donation and carbon market financing,and discusses three innovative financing models referring to relevant research results.These three innovative financing models include forest carbon mortgage, forest carbon bonds and forest carbon lottery. Then analyzes the financing demand and suitable forest carbon financing mode of the Ningdong Forestry Bureau in Shaanxi Province combining with its actual situation. Finally, puts forward some suggestions to improve China’s forest carbon financing model based on the present situation of China’s forest carbon market.The results of this study are:(1) designe two financing models draw lessons from the relevant financial sector: forest carbon bonds and forest carbon lottery. Forest carbon bond borrows from green bonds, which can be issued by the state and enterprises; while the issue of forest carbon lottery can take good use of the voluntary purchsing and strong financing capability of lottery.The lottery can be issued follow China’s current model.(2) taking Ningdong Forestry Bureau in Shaanxi Province as an example, this paper talking about the forest carbon sink mortgage loans model. As Ningdong Forestry Bureau is rich in forest carbon, it can choose forest carbon sink as collateral for the mortgage to get loans.(3) put forward relevant suggestions to improve China’s forest carbon financing model: develop forestry insurance, improve the forest carbon accounting service, construct professional forest carbon trading platform,and enhance the publicity on forest carbon. Among them, forestry insurance can be developed from these there aspects: to increase the types of forest insurance, to establish forest insurance risk compensation mechanism,and accelerate the introduction of forest insurance laws and regulations.