How are agricultural carbon sinks traded?

Mondo Finance Updated on 2024-02-26

Agriculture is not yet included in China's ETS, but agricultural emission reduction projects can participate in voluntary greenhouse gas emission reduction carbon trading activities.

Convert agricultural carbon sinks into tradable carbon assets, and realize the value of carbon assets through carbon trading. The development of agricultural carbon sequestration is an effective way to realize the value of ecological products in the agricultural field, and it is the transformation of the value of "lucid waters and lush mountains" into "golden mountains and silver mountains". Agricultural carbon sequestration trading is not only conducive to increasing farmers' income, but also promoting the transformation of traditional agriculture to green and low-carbon agriculture, and promoting the development of carbon poverty alleviation models in backward areas.

The Measures for the Administration of Carbon Emission Trading (Trial) came into force on February 1, 2021, and the national carbon trading market was officially launched on June 25, 2021. The resumption of the CCER market is imminent, and the carbon trading market for voluntary emission reduction in agriculture will also be active.

On May 5, 2022, Xiamen City, Fujian Province completed the first agricultural carbon sink transaction and established the country's first agricultural carbon sink trading platform in the Xiamen Property Rights Exchange Center, which is the practice of quantifying, trading and realizing the ecological value of carbon sequestration of agricultural products. On August 17, 2022, agricultural carbon sequestration insurance was piloted in Fuding City, Ningde City, Fujian Province, providing 3 million yuan of carbon sequestration loss risk protection for local characteristic agricultural industries.

In November 2022, the transaction of national carbon emission allowances** reached 58 yuan per ton, and looking at the national carbon trading market, the EU's carbon price has exceeded 90 euros per ton, which is converted to about 630 yuan per ton, which is about 10 times higher than the domestic carbon price. Even according to the current domestic carbon price, the scale of the carbon sink trading market increased by agriculture through the technical path of emission reduction and carbon sequestration will exceed 10 billion yuan.

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