Diverse mechanisms to realize the value of ocean carbon sinks
| Type | Pilot projects |
|---|---|
| Trading | In 2021, 5880 tons of carbon reduction from mangrove forests carbon sink project in Zhanjiang, Guangdong Province were purchased by the Environmental Protection Foundation, generating a revenue of 388,000 yuan |
| In 2023, 2,223 tons carbon sink project from mussel farming carbon sink projecr in Dachen Island, Zhejiang Province were traded through bidding, generating a revenue of 100500 yuan | |
| Fund | In 2021, Industrial Bank establishes China’s first blue carbon fund to offset carbon emissions of flight with Xiamen Airlines. Industrial Bank purchased ocean carbon sink generated from the Luoyang River mangrove project through this blue carbon fund to offset the carbon emissions during the flight journey |
| Loan | In 2021, Industrial Bank Qingdao Branch took Jiaozhou Bay wetland carbon sinks as collateral to issue a loan of 18 million yuan to a company in Qingdao, requiring the loan specifically used for purchasing high carbon sink wetland crops |
| In 2023, Nanjing Bank Dafeng Branch issued a loan of 200 million yuan to a company with a loan term of 8 years, using the marine carbon sink generated by local seaweed farming as collateral | |
| Insurance | In 2022, China Life Property and Casualty Insurance Company insured 100 acres (6.67 hectares) of seagrass in Weihai, Shandong Province. Farmers purchase insurance at a rate of 100 yuan per acre. Once there is a weakening of carbon sink in seagrass beds caused by seawater flow velocity, the insured can receive a compensation up to 2,000 yuan per unit |
| In 2023, Taiping Property Insurance Shandong Branch insured 3 million acres of seawater aquaculture areas in Yantai city, providing 30 million yuan insurance compensation. If the average organic carbon particulate in the insured area is lower than the agreed quantity, insurance claims will be triggered |
| Type | Pilot projects |
|---|---|
| Trading | In 2021, 5880 tons of carbon reduction from mangrove forests carbon sink project in Zhanjiang, Guangdong Province were purchased by the Environmental Protection Foundation, generating a revenue of 388,000 yuan |
| In 2023, 2,223 tons carbon sink project from mussel farming carbon sink projecr in Dachen Island, Zhejiang Province were traded through bidding, generating a revenue of 100500 yuan | |
| Fund | In 2021, Industrial Bank establishes China’s first blue carbon fund to offset carbon emissions of flight with Xiamen Airlines. Industrial Bank purchased ocean carbon sink generated from the Luoyang River mangrove project through this blue carbon fund to offset the carbon emissions during the flight journey |
| Loan | In 2021, Industrial Bank Qingdao Branch took Jiaozhou Bay wetland carbon sinks as collateral to issue a loan of 18 million yuan to a company in Qingdao, requiring the loan specifically used for purchasing high carbon sink wetland crops |
| In 2023, Nanjing Bank Dafeng Branch issued a loan of 200 million yuan to a company with a loan term of 8 years, using the marine carbon sink generated by local seaweed farming as collateral | |
| Insurance | In 2022, China Life Property and Casualty Insurance Company insured 100 acres (6.67 hectares) of seagrass in Weihai, Shandong Province. Farmers purchase insurance at a rate of 100 yuan per acre. Once there is a weakening of carbon sink in seagrass beds caused by seawater flow velocity, the insured can receive a compensation up to 2,000 yuan per unit |
| In 2023, Taiping Property Insurance Shandong Branch insured 3 million acres of seawater aquaculture areas in Yantai city, providing 30 million yuan insurance compensation. If the average organic carbon particulate in the insured area is lower than the agreed quantity, insurance claims will be triggered |
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