As China’s carbon market continues to mature, Gongkeng Village in Zijin County, Heyuan, Guangdong, has completed the province’s first transaction under the new forestry carbon inclusion scheme. By selling forest carbon emission reduction credits, the village generated total revenue of RMB 736,700, offering a replicable model for transforming “lucid waters and lush mountains” into tangible economic value in northern Guangdong’s mountainous regions.
The term “selling air” does not refer to canned air but rather to the trading of verified carbon emission reductions under the carbon inclusion mechanism. Trees in local forests absorb carbon dioxide as they grow; once their carbon sequestration effects are quantified and officially verified, they become tradable carbon credits. These credits are sold to mainland enterprises with insufficient carbon emission allowances. The transaction was executed at a unit price of RMB 40.51 per tonne, with a total volume exceeding 18,000 tonnes, settled at the Guangzhou Emissions Exchange.
Zijin County, located at the source of the Dongjiang River, bears significant responsibility for water source protection, which has constrained industrial development. However, the county boasts a forest coverage rate of 76.71%, underpinned by rich ecological endowments. Benefiting from targeted assistance by Shenzhen’s Longhua District, the two regions signed a dual-carbon industry cooperation agreement as early as 2023. Shenzhen provided technical expertise and trading platforms, while Zijin mobilised its entire forest land resources, calculating and bundling the carbon sink potential of individual forest plots for market listing. Several villages in the area had previously completed small-scale carbon credit transactions worth RMB 100,000, accumulating operational experience.
The entire RMB 730,000 proceeds from this transaction have been allocated to the village collective, funding forest management, under-forest cultivation of medicinal herbs and mushrooms, and the construction of public facilities within the village. Unlike one-off logging and timber sales, forests generate carbon sinks annually, enabling villagers to receive stable dividends over the long term and achieving a positive cycle of “protecting forests while prospering.” Years of efforts to enhance forest quality have led to continuous ecosystem optimisation, with multiple globally new species discovered in the area. The presence of the Chinese pangolin, a national first-class protected animal, further validates the effectiveness of conservation efforts.
Carbon credit trading is now being progressively rolled out across multiple regions in eastern, western, and northern Guangdong. Rural areas in Shanwei, Qingyuan, and Zhaoqing have collectively earned millions of yuan from carbon transactions, with Heyuan ranking first in the number of carbon inclusion projects in northern Guangdong. Members of the Guangdong Provincial Committee of the Chinese People’s Political Consultative Conference have suggested drawing on overseas carbon sink mechanisms to expand market channels for ecological products in northern Guangdong. Heyuan’s planning documents also propose basing development on conservation while leveraging carbon trading to multiply ecological value.
As the Greater Bay Area accelerates the integration of green and low-carbon industries, the carbon market is opening up sustainable revenue channels for ecological conservation zones. This demonstrates that ecological protection is no longer merely a fiscal burden but a viable new industry for sustainable operations, offering a reference model for green rural development across mainland China and the Greater Bay Area.
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