A glance at the July 22 auction. Photo by Bi Han

A total of 582.68 tons of urban forest carbon sinks from Julong Mountain Ecological Park in Pingshan District were sold to KKmold Shenzhen Co. Ltd. on July 22, marking China’s first transaction of carbon sinks from urban ecological public-welfare forests.

After 18 rounds of bidding among 11 companies, KKmold won the contract at 151 yuan per ton, well above the starting price of 117 yuan. The transaction was facilitated by the Shenzhen Exchange Group, while the city’s urban planning and natural resources bureau will register the buyer as the official holder of the carbon sink rights.

“This bid reflects our commitment to the local community,” said Huang Zhiqiang, chairman of KKmold. “Our company is located next to the park. We benefit from its green environment every day, and this is our way of giving back by helping protect the greenery at our doorstep.” 

He added that the acquisition aligns with the company’s sustainability strategy, strengthening its ESG credentials while pursuing long-term economic and ecological value.

Representatives from Shenzhen Exchange Group and KKmold Shenzhen Co. Ltd. sign the transaction confirmation.

A view of Julong Mountain Park in Pingshan District. File photo

As one of the first group of Chinese pilot cities for valuing ecosystem products, Shenzhen has been at the forefront of innovation in this field. In 2023, it held the country’s first mangrove carbon sink auction, setting a benchmark for coastal “blue carbon” trading. Now, the city is extending that progress from marine to terrestrial ecosystems, creating an integrated approach covering both blue and green carbon.

A key enabler of this green carbon transaction is the newly introduced “Methodology for Greenhouse Gas Removal from Urban Ecological Public-welfare Forest Management,” China’s first such standard for urban forests. The methodology helps ensure that the carbon sink value of each ton is measured reliably.

Equally important is the clear ownership of ecological assets. Using Julong Mountain Ecological Park as a pilot, authorities conducted 3D cadastral surveys and three-dimensional rights registration — a national first in natural resources administration — to confirm ownership of the forest’carbon sink rights, laying a solid foundation for future trading.

The pilot project has built a full value chain — from rights registration and valuation to public auction and reinvestment of proceeds in local conservation — turning green leaves into “gold” for sustainable development.