Enhancing Forestation Carbon Sinks in China: A Comparative Analysis of New and Traditional Market Incentive Frameworks

Abstract

New markets for ecosystem services have been proposed as a way to diversity landowner’s revenues from forestation. This study examines differences in China’s forestation carbon sinks under new and traditional market incentive frameworks. We found that China could biophysically sequester 209.77 Mt CO2 annually through forestation, but due to lower carbon prices, only less than 40% of this potential was currently investable. Under the new market incentive scenario, China’s investable forestation area, carbon sink potential, and carbon sink costs were roughly double, 1.32 times, and half of those observed under the traditional market, respectively. China’s carbon sink potential intensity of reforestation was 1.54 times as great as that of afforestation, with its carbon sink costs being about 40% of afforestation’s. These findings can provide valuable recommendations for policymakers.

Keywords: Forestation, Carbon sinks, Ecosystem services, Carbon Neutrality