KUNMING, Nov. 8 (Xinhua) -- A transaction of carbon sinks generated in the prevention and control of water and soil erosion has been completed in southwest China's Yunnan Province.
The carbon sinks of 115,600 tonnes generated as a result of water and soil conservation in a river basin in Qujing City of Yunnan were transacted at over 3.81 million yuan (about 533,367 U.S. dollars), according to a deal reached Wednesday.
A carbon sink is anything that absorbs more carbon from the atmosphere than it releases. Forests and grassland are typically carbon sinks.
The buyers included four local enterprises and one male entrepreneur who participated in the trading in his own name. He contributed about 297,000 yuan, according to sources familiar with the trade.
The water and soil conservation measures taken in the river basin, covering 31.17 square kilometers in Malong District of Qujing City, included afforestation and converting hillside slopes to terraces.
The trading of carbon sinks generated by water and soil conservation in China is guided by the "carbon inclusion" initiative, because relevant methodologies have not yet been included in the China Certified Emissions Reductions (CCER), and the carbon sinks purchased by the four enterprises cannot offset their emissions, according to Wang Wei, deputy head of the water and soil conservation station of Yunnan.
"Carbon inclusion," an innovative voluntary emission reduction mechanism, is an incentive mechanism that values environmentally-friendly practices of the public, communities and micro, small and medium-sized enterprises in daily consumption.
The four enterprises are engaged in foreign trade, and the purchase of carbon sinks will facilitate their exports to countries and regions that have carbon footprint requirements, according to Wang.
An official of the Malong District said that revenue from the transaction will be used in future water and soil conservation efforts.
Carbon trading is regarded as one of the critical tools to motivate emission-reduction efforts. China has set ambitious goals of achieving carbon peak by 2030 and carbon neutrality by 2060, contributing to the global fight against climate change.
As of the end of June, China's national carbon market reported a trading volume of 465 million tonnes of carbon emissions and a total turnover of 27 billion yuan.
China's first transaction of carbon sinks generated by water and soil conservation took place in December last year in east China's Fujian Province. ■
