China Outlines 15th Five-Year Strategy for Grassland and Forest Carbon Trading

China’s National Forestry and Grassland Administration, together with three key government bodies, has issued the 15th Five-Year Plan for Forestry and Grassland Protection and Utilization. Building on prior ecological restoration efforts, the blueprint marks a major policy shift toward 'grass-livestock co-governance' and sustainable usage. Concurrently, the plan officially commits to incorporating forest carbon sink projects into the national voluntary greenhouse gas emission reduction trading market, aiming to transform ecological assets into quantifiable financial credit products.

The policy reflects China's evolving approach to ecological preservation by connecting conservation directly with rural revenue generation and market mechanisms. Moving from passive fencing to active pasture management supports livestock industries while reducing overgrazing. Simultaneously, bringing forest carbon sinks into the national voluntary market provides financial incentives for forestry conservation and offers crucial liquidity for carbon traders and green finance institutions.

China's National Forestry and Grassland Administration, alongside three central ministries, has issued the 15th Five-Year Plan for Forestry and Grassland Protection and Utilization, signaling a strategic shift in how the country manages its ecological resources [6a68b292af67af850f71ed02]. The policy document—jointly released with the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Natural Resources—outlines dual priorities: transitioning grassland management from strict enclosure toward active, rational utilization and incorporating forest carbon sink projects into the national voluntary emission reduction trading market [6a68b292af67af850f71ed02]. Under the 14th Five-Year Plan, China relied heavily on grazing prohibitions, seasonal bans, and physical fencing to restore degraded pastures. Official figures indicate these measures reduced degraded grassland by an average of 100 million mu (approximately 6.67 million hectares) annually, pushing healthy and sub-healthy grassland coverage above 70 percent [6a68b292af67af850f71ed02]. Building on these ecological gains, the new strategy introduces 'grass-livestock co-governance' to balance protection with local economic output [6a68b292af67af850f71ed02]. Han Fengze, deputy director of the Grassland Management Department at the National Forestry and Grassland Administration, outlined three primary implementation paths: targeted grass modification and sand control, strengthened regulatory oversight coordinated with the 'Three-North' shelterbelt project, and the expansion of modern ecological grass husbandry [6a68b292af67af850f71ed02]. By cultivating perennial artificial pastures in areas with suitable water and heat conditions, China plans to boost forage supply, relieve grazing pressure on natural grasslands, and support stall-feeding and intensive livestock operations [6a68b292af67af850f71ed02]. Parallel to grassland reform, the plan lays out steps to monetize forestry assets through carbon markets [6a68b292af67af850f71ed02]. Liang Yongwei, a second-level inspector at the National Forestry and Grassland Administration's Ecological Protection and Restoration Department, emphasized that turning forest carbon sinks into tradable assets requires converting biomass volume into standardized carbon credit products that meet strict standards for eligibility, additionality, and quantifiability [6a68b292af67af850f71ed02]. Participating in the national voluntary greenhouse gas emission reduction trading market aims to establish a long-term commercial mechanism for forest conservation [6a68b292af67af850f71ed02].