This paper provides an overview of China’s climate mitigation policy related to the forestry sector, with a special focus on the development of carbon forests which are established to mitigate climate change. A total of 3.5 million ha of carbon forest were planted in the past decade. In recent years, the number of Voluntary Emission Reduction forest carbon projects has increased rapidly. The main challenges for future development of carbon forests under market mechanisms include increasing costs, uncertainty in the future supply and demand for China-certified emission reduction, and potential disputes between households and project developers.

Non-timber forest product plantations (NTFP plantations), also known as “economic forests” in China, refer to forest plantations cultivated for the production of non-timber products such as fruits, nuts, oils, seasonings, and medicinal materials. With a rapid increase in the total area in the past two decades, NTFP plantations have become an important type of forestland use in China. The shift of agricultural labor to the non-agricultural sector caused by rising salaries in China will inevitably have a great impact on land use, forestry, and agricultural production. To understand the effects of off-farm employment on the development of NTFP plantations in China, a total of 709 valid household questionnaires from Sichuan and Shaanxi provinces were collected. Heckman’s two-stage model was employed in the empirical analysis. The results of the study show that off-farm employment has a significant positive effect on both the probability that a household has planted NTFP plantations and the plantation area. Households engaged in off-farm employment would prefer to plant NTFP plantations. Moreover, the higher the degree of participation in off-farm employment, the more likely households are to choose to plant NTFP plantations. The area of NTFP plantations would increase with the increase in off-farm employment degrees. Besides, the age and education level of the household head show a positive effect on the NTFP plantation planting. The implication of the results is that with a continuing increase in the proportion of off-farm employment, NTFP plantation cultivation could also continue to expand. Funds are still an important constraint for households to choose to plant NTFP plantations. Therefore, if policymakers want to promote the development of NTFP plantations on collectively owned forestland, they should first resolve households’ financial constraints.

As the central part of terrestrial ecosystems, forests have an irreplaceable role in regulating climate, prompting various efforts to protect them. Logging regulation is the most commonly used forest conservation strategy. Although the logging permit scheme was written into the Forest Law in China, its effect on forest carbon sequestration has rarely been subject to careful empirical scrutiny. In this paper, we develop and estimate a spatial econometric model to disentangle its potential effects on forest carbon sinks based on a panel dataset of 29 provinces from 1989 to 2018 in China. Our calculations show that China’s forest carbon sinks are still growing and are connected geographically, with a tendency towards “high-high” and “low-low” aggregation. Increasing the logging quota produced a spatial spillover effect that might encourage the formation of forest carbon sinks in nearby areas. It considerably encouraged the expansion of forest carbon sinks. Additional mechanism testing is consistent with the claim that rising logging quotas have significantly boosted the proportion of timber forests in afforestation but had no effect on the movement of rural labor to urban areas. The development of forest carbon sinks is impacted in different ways by various logging quota types, with an increasing tendency for logging quotas to have a more significant contribution. Additionally, the non-collective forest region has a more significant spatial spillover effect of the logging quota on forest carbon sinks. The logging quota scheme should be improved by policymakers, beginning with eliminating tending quotas in the southern collective forest region. After that, the logging quota would gradually be eliminated nationwide, notably for commercial forests.