Local Carbon Inclusive Agricultural Carbon Sinks Trading and Village-Level Revenue Sharing Operation

📌 Background

Following the restart of CCER, methodologies have been revised multiple times and expanded to fields such as agricultural waste. More than 20 provinces nationwide have established local carbon inclusive markets and supporting agricultural carbon sink policies, entering an intensive implementation phase in 2026. In Fujian, 38,000 tons of carbon sinks from 8 village collective forests were traded at the carbon emissions trading center at an average price of 40 RMB/ton, generating direct revenue of 1.52 million RMB for the village collectives, of which 30% is used for villager dividends (based on local trading platform cases). Carbon sink measurement, application, and matching service fees are generated accordingly.

👤 Target Customers

The clients are village collectives as well as agricultural and forestry business entities; buyers are primarily emission-controlled enterprises and green procurement parties; carbon asset development and platform operation agencies assume application and matching roles and share revenues proportionally.

💰 Revenue Streams

1) Carbon sink transaction proceeds are shared according to agreed proportions, such as Zhejiang Jiashan's single transaction completed via a three-party ratio allocation of 16%, 4%, and 80%; 2) Additional fees for carbon sink measurement and monitoring, project application, and platform matching services; 3) Regional replication: charging project-based carbon sink development and matching service fees to newly added village collectives and project owners.

🧮 Cost Structure

Carbon sink measurement, accounting, and third-party verification and auditing expenses, project application and registration costs, monitoring and delivery personnel, and local platform operational expenses.

🛡️ Moat

Securing local carbon inclusive market resources and methodology application capabilities, signing long-term revenue-sharing agreements with village collectives to lock in carbon asset sources; policy details clearly define revenue attribution ratios, establishing stable cooperation expectations.

🔑 Keys to Success

• Lock in high-quality carbon sink sources and sign stable revenue-sharing agreements with village collectives
• Run through the full process of measurement, verification, registration, and trading while driving down unit costs
• Continuously track local carbon inclusiveness and CCER methodologies to maintain application qualifications

⚠️ Risks

• Tightening of local carbon inclusive policies or adjustments to trading rules
• Methodology revisions resulting in re-accounting of developed emission reductions
• Excessively small individual returns making the model chronically dependent on government incentives

🏢 Cases

• In April 2026, an agricultural carbon sink transaction totaling 18,198.9 RMB in Jiashan County, Zhejiang Province, was shared according to a three-party ratio of 16%, 4%, and 80%
• 38,000 tons of carbon sinks from 8 village collective forest lands in Fujian Province were traded at the Fujian Carbon Emissions Trading Center at an average price of about 40 RMB/ton, generating direct village collective revenue of about 1.52 million RMB
• Guangdong Province issued the Implementation Rules for Forestry Carbon Sink Project Development and Management (2026 Edition), specifying that 80% of carbon sink revenues belong to village collectives and forest farmers

📊 SWOT Analysis