Abstract:

States and trends of forestry-based carbon market were illustrated based on comparison between the voluntary forestry-based carbon market and the compliance carbon sequestration market under CDM from market size and project types and prices by credit and participants. It were analyzed that the effects of the voluntary carbon sequestration market on the compliance carbon sequestration market under CDM. The results showed that the voluntary forestry-based carbon market may have implications for the compliance carbon sequestration market under CDM by driving the price of carbon down, and may lessen the credibility of afforestation and reforestation projects under CDM if there is a high degree of failure in the projects, and may lead to a reduction of available land for successful projects, and may have a positive impact on afforestation and reforestation projects under CDM as they may be able to offer a more pragmatic approach to offset with similar results. Whereas the market of forestry carbon sequestration have important effect on mitigating greenhouse gas’s emission in China, it is necessary that building scientific management system and trading platform for credits from the voluntary carbon sink project and developing the voluntary forestry-based carbon market in China were made in this paper.

Key words: carbon trade, the voluntary carbon sequestration market, the compliance carbon sequestration market under CDM