Figure 1.
A circular flow diagram places policy between carbon sink resources, assets, products, and revenue, with linking actions around the cycle.The diagram places policy in a central circle. Four surrounding circles read carbon sink assets, carbon sink products, carbon sink revenue, and carbon sink resources. Short arrows connect policy to each surrounding circle. Curved arrows form an outer cycle. The arrow from carbon sink resources to carbon sink assets is labelled confirmation of rights. The arrow from carbon sink assets to carbon sink products is labelled standards. The arrow from carbon sink products to carbon sink revenue is labelled trading, fund, loan, insurance. The arrow from carbon sink revenue to carbon sink resources is labelled ecological compensation.

Loop of interaction between policy and market mechanisms

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