Characteristics of forest carbon credit transactions in the voluntary carbon market

摘要

The voluntary carbon market allows participants to go beyond regulatory carbon offsetting. Recent developments have improved the transparency and credibility of voluntary carbon trading, and forest carbon credit transactions constitute more than half of trade volume. Its workings, however, have not been sufficiently explored in the literature. This study analyses the characteristics of forest carbon credit transactions in the voluntary carbon market using frequency analysis and logistic regression analysis. The results reveal that the co-benefits of forest carbon projects are an important factor influencing carbon credit transactions. From the higher transaction ratio of credits from CCB Standards-labelled projects and projects using co-benefit-oriented standards, it can be inferred that credits with potential for co-benefits (e.g. fostered corporate social responsibility, social cohesion of local communities and voluntary leadership, and positive environmental impacts) are preferred to those focusing exclusively on emission reduction in the voluntary carbon market. The findings of this study suggest that developing co-benefits is important for strengthening the market competitiveness of forest carbon credits in the voluntary carbon market. Additionally, unlike the compliance carbon market, in the voluntary carbon market stringent carbon standards do not always guarantee credit transaction performance.