CARBON FORESTRY AND CARBON TRADING
Shirong Liu
Member, China Economic and Social Council
Vice President, China Academy of Forestry
Abstract:
Forest is the main component of terrestrial ecosystems, it absorbs and
sequestrates large quantity of CO2 in the air, serving as a huge carbon sink.
Global forest carbon storage accounts for 77% of the total terrestrial vegetation,
while carbon storage in forest soil makes up for 39% of the global soils. However,
deforestation, without doubt will increase green house gas emission such as CO2
etc, and thus it has become the second main CO2 emission source closely after
fossil fuel burning. In this sense, forest ecosystem has played an important and
irreplaceable role in global carbon cycle and carbon emission and sequestration
balance.
To mitigate the ever aggravated global climate change, forestry is now
undertaking a developing transition and conversion. Seen from an international
view, carbon forestry has taken a new rise. Carbon forestry covers the following
four aspects: 1) to promote those forest activities which will enhance the capacity
of carbon sink, such as: afforestation, reforestation, ecological restoration, and
setting up Agro-forestry compound system so as to increase the carbon store in
terrestrial vegetation and soil; 2) to conserve and sustain forest carbon pool,
namely to protect the carbon store already sequestrated in
the existing forest
eco-system and restrict and reduce carbon emission; 3) to take a series of
measures of carbon management through sustainable forest management
process to reduce disturbance to soil while increase tree growth, and therefore
carbon emission from forest management is decreased while carbon sink is
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enhanced; 4) to implement carbon replacement action, use durable forest timber
products to replace energy-intensive materials, utilizing the renewable wood fuel
(such as bio-diesel and lignose-cellulose transformed ethanol) and recycled
logging residues for fuel.
Kyoto Protocol, reached in 1997 for the purpose of mitigating global climate
change, prescribed that: industry countries can obtain carbon credit by
implementing afforestation, reforestation, reducing of deforestation and other
forest management or by implementing CDM in developing countries to
compensate for and reach its quantified emission limitation and reduction
commitments. The creation of CDM sets up the mutual benefit marketing function
between developing countries and developed countries, it materialized the
conversion as from eco-capital to industrial currency, realizing the carbon trading.
Implementing CDM forest project in less developed areas of developing countries
can not only make developed countries fulfill its quantified emission limitation and
reduction commitments but also make benefits to the poor people in the area. It
will relieve poverty, create new employment opportunity, develop economy and
improve environment. China has bright prospects for developing carbon forestry
and implementing CDM projects. Implementing carbon forestry will accelerate
forestry eco-construction, regional eco-environment improvement, poverty
reduction and forestry bio-energy exploration. It is a new starting point for Chinese
forestry development.
China and Europe have played a significant role in international politics, economy,
trade and global climate change mitigation, and a major role in international
conventions implementation and environment negotiation. Therefore, China and
Europe shall intensify the wide cooperation in carbon sequestration and expand
the cooperative CDM project, and explore a series of related new issues, such as
policy management, carbon sink assessment methodology, carbon trading etc, all
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these are constructive to two parts’ carbon trading market, by doing so, China and
Europe will set up a good example for global CDM carbon project implementation,
offering experience, experimental demonstration, which is of critical importance of
global environment benefts and demonstration significance.
Key Words: Forest, carbon sequestration, carbon sink, carbon trading
One: Introduction
IPCC fourth assessment report (2007) noted that in the past 100 years, global
average temperature has risen by 0.74C±0.18C. Temperature rise range in the
northern hemisphere during the 20th century might be the highest in the past 1000
years. The rainfall distribution has changed as well. Rainfall in continental areas,
especially in middle and high altitude has increased, while rainfall in Africa region
has reduced. In some areas, extreme climate events (EI Nino, draught, flood,
thunder storm, hailstorm, windstorm, high temperature and sand storm, etc.) have
increased its frequency and intensity. According to IPCC’s fourth forecast
assessment report (2007), till the year 2100, global average temperature will rise
by 1.8C to 4 C with sea level rising by18 to 59 cm.
China’s climate change trend coincides with that of global climate change. In the
past 100 years, China’s temperature has risen by 0.4－0.5C, a bit lower than the
global average level of 0.74C. Viewed from the regional variation, northwest,
north China and northeast area have seen a more obvious greater warming,
among which northwest is above the national average level. According to the
forecast of China climate change scenarios, to the year 2020-2030, national
average temperature will see a rise of 1.7C; and in the year of 2050, national
average temperature will get a rise of 2.2C.
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Accumulated observation facts and studies show that, the ever increasing
emission of CO2 and other greenhouse gas has brought in the greenhouse effect
which leads to global climate change.
The fourth IPCC assessment report (2007)
observed that, for the past 50 years, the rise of global average temperature has
much possibility to do with human being’s increasing burning of fossil fuel, that
means 90% of the temperature rise resulted from the green house gas emission
caused by human being’s activities.
The global warming has in many areas laid grave negative influences on natural
ecological systems. Such as the rise of the sea level, the glacier retreat, tundra
ablation, prolonged growing season in the middle and high latitude, the extending
distribution of fauna and flora to polar region and high latitude areas, some wildlife
population decreased, some plants’ flowering period advanced etc. At the same
time, climate change has imposed immense influence and grave threat for human
being’s living, health and economic & social sustainable development. Climate
change has aroused deep concern in international community, becoming one of
the hotspots in international politics, economics, diplomacy and state security.
Forest is the main component of terrestrial ecosystems, forest area accounts for
1/3 of the total land area in the earth. The total photosynthesis yield of world
forest takes 2/3 of that of terrestrial ecosystem. Forest has played a duel role in
regulating CO2 in the air. On the one hand, forest can absorb and sequestrate
huge quantity of CO2 in the air, serving as an immense CO2 absorption sink,
storage and buffer. On the other hand, the deforestation is a big CO2 emission
source. Forest is an important factor in global carbon recycling and carbon
emission and sequestration balance in terrestrial eco-system. Therefore,
international climate change convention and other related conventions all regard
forest as a major approach for obtaining global greenhouse gas reduction. In
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adapting to and mitigating global climate change, forest management and forestry
development are now confronted with new challenges and developing
opportunities.
Two: Forest Ecosystem is a Major Global Carbon Pool and Carbon Sink
Forest is large in terms of distribution area and quantity of biomass. The total area
of forest over the world covers 3.869billion hm2, about 30% of world’s total land
area. IPCC (2001) estimated that global terrestrial ecosystem carbon storage
reached 2477GtC, among which, carbon store from vegetation accounts for 20%,
carbon store in soil 80%. Forest vegetation carbon storage accounts for 77% of
that of total global vegetation, while its soil carbon storage accounts for 39% of
that of total global soil. Unit area forest ecosystem carbon storage is 1.9—5 times
that of farmland. Obviously, forest ecosystem is the largest carbon pool in
terrestrial eco-system, whose increase or decrease will bring about significant
influence on the quantity of CO2 in the air.
Table one: Global Vegetation and 1m Soil Carbon Storage
(Ciais et al., 2000)
Biomes
Carbon Storage (GtC)
Area
(106hm2)
Vegetation
Soil
Total
Tropical Forest
1,760
212
216
428
Temperate Forest
1,040
59
100
159
Boreal Forest
1,370
88
471
559
Savanna
2,250
66
264
330
Temperate Grassland
1,250
9
295
304
Desert and Semi Desert
4,550
8
191
199
Tundra
950
6
121
127
Wetland
350
15
225
240
5
Farmland
1,600
3
128
131
Total
15,120
466
2,011
2,477
China’s estimated carbon storage in forest vegetation and soil is approximately
5GtC and 15GtC, respectively (Zhang Xiaoquan etc. 2005). And China forest’s
carbon sequestration ability is continuously growing. According to China’s
National Climate Change Program, in 2004, China’s forest net carbon
sequestration is 450 million tons CO2 equivalent, making up 8% of the concurrent
year’s total national greenhouse gas emission. China’s afforestation carbon
sequestration will enjoy a continuous increase, till 2010, forest coverage rate is
expected to reach 20%, whose carbon sequestration increased to 500million ton
CO2 equivalent. Expected till the year of 2050, China forest net carbon
sequestration capacity will increase by 90.4% compared with that of 1990. Taking
1990 as the base year, till 2010, 2030 and 2050 carbon sequestration from
afforestation and reforestation will be 26 million tons C/year, 124 million ton
C/year and 191 million tons C/year, respectively.
Forest, compared with farmland and grassland has a higher net primary
productivity (NPP) and huge biomass accumulated for a long time which made it a
stronger carbon sink than grassland plants and crops. Atmospheric measurement
and simulation research shows that: in the 1980s, land is a 0.21.0 GtC carbon
sink, that is the number of 1.91.3 GtC.a-1 land carbon sequestration removing
1.70.8 GtC.a-1carbon emission resulted from land use conversion. In the 1990s,
the carbon sequestration increased to 0.71.0 GtC.a-1, which means 2.31.3
GtC.a-1 of land carbon sequestration eliminated the 1.60.8 GtC.a-1 carbon
emission resulted from the land use conversion. (Ciais et al., 2000). The field
measurement and model simulation conducted in North America shows that,
middle and high latitude vegetation in northern hemisphere is a major carbon sink,
which plays a critical role in reducing the imbalance between carbon
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sequestration and carbon emission.（Brown et al.，1999；Schimel et al.，2000）.
Analyzed from the flux measurement of CO2, forests, either of boreal, temperate
or tropical forest all showed carbon sinks, their intensity varied with the different
forest types, climate change and other natural or man-made interference (Mao
Zijun,2002).
Deforestation, forest damage or degradation, all will result in carbon release from
forest biomass and soil, which will weaken forest carbon storage and carbon
sequestration capacity. When the conversion of forestland to farmland occurred,
the loss of SOC in the soil can be as high as 75%, and the average SOC will drop
30.32.4% after 10 years, excepting the factor of soil unit weight change, SOC
average drop is 22.14.1% ( Murty et al., 2002). According to IPCC estimation,
during 1850 to 1998, on the global level, carbon release resulted from the land
use change is 13655 GtC, among which, 87% is due to deforestation, 13% is
from the grassland reclamation, while during the same period, the carbon release
from fossil fuel and cement production was 27030 GtC (Ciais et al., 2001). So
the massive deforestation and forest damage as well as degradation are the
second main CO2 emission sources closely after fossil fuel burning.
Three: Carbon Forestry and Carbon Emission Mitigation & Carbon Sink
Enhancement
To mitigate the ever acute global warming, forestry is now undertaking a
developing transition and conversion, playing an important and irreplaceable role
in the process. At the moment, carbon forestry has taken the shape of forestry
development as a new direction in the world. Carbon forestry covers the following
four aspects:
First, by virtue of afforestation, reforestation and ecological restoration, setting up
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agro-forest compound ecosystem to improve the forest’s carbon sequestration
capacity. In the world, the land area which can be used for afforestation and
reforestation is 345 million ha, if all mentioned areas are used for afforestation
and reforestation as well as agro-forest system, the carbon sequestration capacity
can be 28 GtC from afforestation, and 7 GtC from agro-forest（Reed et al., 2001).
Revegetation on the 217 million ha tropical degraded land can bring about 11.5～
28.7GtC carbon sequestration (FAO，2001b). From 2008 to 2012, in the first
session, by massive afforestation and reforestation, China’s net carbon
sequestration can be 0.667GtC, till 2050, China forest annual net carbon
sequestration will be enhanced by 90.4% compared to that of 1990 (Zhang & Xu,
2003). China’s agro-forests have much room for developing carbon forestry.
Second, to conserve and sustain forest carbon storage, namely to protect the
existing carbon storage in the existing forest eco-systems. This can prevent
carbon emission from ecosystem into the air. Core measures include: reduce
deforestation, improve wood utilization efficiency and implementing a more
effective forest disaster control (forest fire, flood, wind damage and pest disease)
which can mitigate the carbon emission resulted from human being’s interference
to trees and soil. It can not only protect the carbon storage in forest ecosystem,
but also serves the purpose of conserving biodiversity and ecosystem functions.
These measures are mostly suitable in those areas with slow growth, and poor
stem-wood stand and less opportunity for lumber. As deforestation will directly
result in the emission of carbon stored in forest ecosystem to the air, compared
with afforestation and reforestation, reducing deforestation is a more direct
approach for mitigating CO2 density in the air. In the next 50 years, forest carbon
sequestration capacity can reach 14 GtC by decreasing deforestation （Reed et
al., 2001).
Third, taking a series of carbon management measures through implementing
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forest sustainable management to reduce carbon emission and increase carbon
sink. By refining forest management, such as modifying cutting operation,
interference to forest and soil can be minimized and therefore carbon release
from logging and tending operation can be reduced. Traditional cutting work laid
fair negative interference to forest stand, by improving forest cutting measure, the
damage rate of maintenance stand can be reduced by 50% (Sist et al., 1998) and
thus mitigated the carbon emission from forest cutting. Besides, by improving
timber utilization efficiency, the decomposition and carbon emission speed can be
reduced; prolonging forest timber product longevity can slow the stored carbon
emitted to the air; Land filling waste and old wood product can postpone its
carbon emission, in some cases, the carbon can even be permanently stored.
碳贮量 Carbon stock (tC.hm-2)
350
分解 decomposition
燃料 fuel
300
垃圾填埋 landfill
木产品 wood products
250
树木 trees
凋落物和采伐剩余物 litter and slash
200
土壤 soil
150
100
50
0
0
20
40
60
80
年龄 Age (a)
Figure 2: Carbon change during the period of two rotation (Health, 2001)
T
Fourth, from the renewable resource point of view, focusing on forest ecosystem
carbon cycle and traditional forest timber production, carbon replacement
approaches should be encouraged and adopted, Namely, using durable
wood-based products to replace the energy-intensive materials such as cement,
steel, plastic and bricks, which can not only increase the land carbon storage but
also can reduce the greenhouse gas emission generated during those materials’
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production processes. Despite that carbon in part of forest timber products will
eventually return back to the air by decomposition, still forest resource’s
renewable nature can absorb and sequestrate these carbon back, finally avoiding
the irrevocable net carbon emission caused by fossil fuel burning. Using
renewable bio-fuel such as bio-energy plantation and recycling use of cutting
residue can make bio-energy replace fossil fuel reducing the carbon emission
from human being’s activities. (See Figure 2). IPCC estimated that, from 2000 to
2050, global energy plants replacement can obtain 20～73GtC (Watson et al.,
1996). Carbon replacement measure can be adopted in fast-growth, even-age
plantation and short-rotated coppice forest, on the condition of minimum forest
management interference to forest soil.
Four: Carbon Trading and Its Potential
To mitigate global climate change and materialize the aim listed on United
Nations Framework Convention on Climate Change, in 1997, Kyoto Protocol was
agreed. The Protocol promulgated: industrial countries in the first session from
2008 to 2012, greenhouse gas emission reduction should be at less by 5% of
1990 emission level. Industrial countries can use afforestation, reforestation and
reduce deforestation and other forest management activities or implementing
CDM in developing countries to gain carbon credit so as to achieve its quantified
emission limitation and reduction commitments. The Marrakech Accords reached
in 2001, made uniform definition and related implementation of land use and
forest activities listed in Kyoto Protocol. In December 2003, the ninth convention
of the parties to the protocol made a detailed CDM afforestation project
implementation international rule (UNFCCC, 2003). The creation of CDM sets up
a win-win mechanism between developed countries and developing countries,
offering a new staring point for carbon forestry.
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In view of the world regulation agreed that: total carbon credit gained for each
country through CDM by using afforestation and reforestation is fixed, no more
than its base year emission’s 1% times 5
(UNFCCC, 2001). Therefore, countries
to the protocol are allowed 32 million tC as CDM’s carbon sink credit. Based on
calculation of 30—50tC carbon sink per ha, world’s CDM afforestation project
potential is approximately 3.2—5.3 million ha. World’s CDM afforestation project
area is less than China’s one year plantation area, accounting for about 6%--10%
of China’s plantation area from 2001 to 2020, in this sense, China has a huge
potential in CDM afforestation project.
At the moment, CDM is solely confined to afforestation and reforestation project,
so forest CDM provides afforestation and reforestation with a good marketing
operational mechanism. As a marketing operation model, CO2 emission
enterprise can purchase carbon credit to neutralize its extra CO2 emission over
the limited quota, realizing the conversion from eco-capital to industrial currency,
which means realizing carbon trading. In the first session, the available CDM
afforestation and reforestation project marketing is 40 million to 100 million
tco2-e.a-1. China takes up 6.7%～37%, optimistically estimated, China can obtain
20% market quota in the first session, that is 3.3 million t CO2, equals to 0.7 million
to 1.1 million ha of plantation area. Calculated by World Bank Bio-carbon Fund
stipulated carbon sink price (one ton of CO2 for 3 to 4 US dollars), the whole price
can be 363 to 484 million US dollars (Zhang et al., 2005).
Generally speaking, carrying out CMD’s afforestation and reforestation in
back-ward area in China can make the developed countries fulfill its quantified
emission limitation and reduction commitments while benefit people in poor area,
release poverty, increase employment opportunity, promote economy and refine
environment. Therefore, carbon trading brought by CDM will bring tremendous
social, economical and environmental benefits for poor people. Each year, world
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carbon trading can bring 300 million US dollars to poor population.
Developing carbon forestry and implementing CDM carbon sink project are in
conformity with China forestry development strategy, it is constructive for Chinese
forestry ecological construction, regional ecosystem improvement, bio-energy
development and poverty alleviation. It is a new opportunity for China’s forestry
development.
And it is feasible to carry out carbon forestry and implement CDM
afforestation project in China. Up till now, China has successfully conducted the
first global and also first national afforestation and reforestation carbon sink
project in Guangxi autonomous region, China. On this existing basis, more efforts
are needed to expand CDM operation in China and the related policy, standards
and methodology as well and research and experimental demonstration so as to
facilitate a larger carbon trading market quota in the future.
Five: Sino-EU Forestry Cooperation for Climate Change
China and EU have played an important role in international political, economical,
trading field and honoring responsibilities listed in United Nations Framework
Convention on Climate Change as well as in tackling global climate change. A
broader and more extensive cooperation in carbon forestry and CDM carbon sink
projects shall be conducted between the two parts.
(1) To perform United Nations Framework Convention on Climate Change ,
implement Kyoto Protocol and conduct other international dialogue and exchange
concerning climate change and forestry, especially the important issues listed in
United Nations Framework Convention on Climate Change, where parties to the
convention have negotiated, such as carbon sink of wood products and
deforestation reduction in developing countries, harmonization of mutual
viewpoints, seeking a cooperative approach which will meet both parts benefits
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and a common understanding in obligation performing, two parts’ benefits and
forestry development.
(2) To strengthen the cooperation and exchange in forestry policy making for
tackling climate change. Under relevant law and regulation, conduct dialogues
and negotiations, amend, supplement and refine relevant legal documents.
Emphasize and stress on the regulations on tackling climate change, offering a
legal base for improving forests and other natural ecosystem’s capacity to adapt
to climate change.
(3) In the field of energy exploration and utilization for mitigating climate change,
such as developing bio-energy and new material, actively promote carbon
replacement measures which include: durable forest timber product replacing
fossil fuel extensive material, bio-energy, fell residues recycling use (used for fuel
or bio-energy) and carrying out extensive and effective cooperation. China can
introduce, digest and absorb EU’s advanced technology on forestry bio-energy
production and conversion, such as bio-energy plantation cultivation, bio-diesel
distilling, lignose and cellulose transformed ethanol, bio-energy power generation
etc.
(4) Using the performing and implementing Kyoto Protocol as a platform,
Sino-EU two parts can expand forestry carbon trading market. Energetically
broaden forestry carbon sink financing channel, materializing public owned
afforestation, integrated household contracting management, stock and stock
cooperation
afforestation,
individual
afforestation
and
international
aid,
international cooperation project or international load and various forms of carbon
sink afforestation, forming a complementary development model.
(5) To strengthen cooperation and exchange on forestry solution and action
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plans mitigating climate change. Two parts should intensify the cooperation in
making and implementing forestry policy and action plan for mitigating climate
change. Besides, by intensifying afforestaton, reforestation and degraded forest
recovery, forest management and setting up agro-forest compound system,
improve capacity for forest sustainable management, giving forestry a full play to
mitigate climate change and improve forestry’s ability adapting to climate change.
(6) To strengthen cooperation on forestry capacity building for tacklinging climate
change. In reference of IPCC carbon quantification methodology, two parts set up
and develop its own unified forestry carbon measuring system and methodology
as well as compile forest greenhouse gas inventory, set up and improve forest,
wetland, deserted land resource’s environmental monitoring, enhance capacity
building of forest fire control and forecast system, forest fire monitoring,
communication and forest fire obstructing, forest pest disease control, forecast,
quarantine, epidemic disease monitoring.
(7) To intensify related science and technology exploration, both parts should
utilize its own carbon flux observation network, conducting forest carbon flux
coordinated observation, monitoring forest carbon sink intensity and dynamic
change. Further study the influence of climate change to forest ecosystem and
forestry adaptation strategies. Carrying out integrated forestry research in relation
to climate change, which include: tree species selection, biodiversity conservation
and degraded forest restoration, forestry bio-energy and conversion technology
etc.
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