A Dead Rabbit and 16 Tons of Carbon Credits: Insights from Hubei's First “Forestry Carbon Credit + Ecological Justice” Case and the Urgent Need for Biodiversity Credits in China

On a day in August 2023, in the village of Langping in Changyang, Hubei Province, a local resident named Xiang used a homemade gun to hunt a wild rabbit in a nearby field. What seemed like a routine event quickly spiraled into a major issue. The entire area of Changyang is a no-hunting zone, enforced year-round. Moreover, the rabbit in question was a protected species under national law, recognized for its significant ecological, scientific, and social value. As a result, Xiang's actions constituted illegal hunting.

As the case progressed, the court in Yichang, Hubei, decided to implement a novel ecological compensation mechanism. This innovative approach combines "forestry carbon credits" with ecological justice, aiming to achieve ecological restoration through a market-based solution. In April 2024, Yichang selected Changyang and Zigui counties as pilot areas, introducing county-level forestry carbon credits and exploring the option for offenders in forestry-related cases to fulfill their ecological restoration and compensation responsibilities by purchasing carbon credits.

In Xiang's case, the presiding judge thoroughly explained the concept of "forestry carbon credits" and its role and necessity in ecological restoration. After understanding, Xiang agreed to use carbon credits as compensation for the ecological damage caused and submitted a carbon credit purchase application.

On June 21, 2024, Hubei Province issued its first forestry carbon credit certificate. The amount required for Xiang to purchase was calculated at 16.18 tons by an independent third-party organization. Based on the market price at the time, he needed to pay 1,500 yuan. By early July 2024, Xiang voluntarily purchased these carbon credits to compensate for the ecological damage he had caused.

This case not only marks Hubei's first successful application of the "forestry carbon credit + ecological justice" compensation mechanism but also signifies a major innovation in environmental protection. The mechanism deviates from traditional ecological compensation methods, which typically involve direct physical restoration such as reforestation or wetland rehabilitation. Instead, the "forestry carbon credit + ecological justice" approach integrates a market-based carbon credit trading system, allowing offenders to fulfill their ecological compensation responsibilities through the purchase of carbon credits. This method enhances the flexibility and effectiveness of compensation while leveraging market mechanisms for ecological restoration.

Additionally, this market-based approach enables offenders to provide economic compensation for the environmental damage they caused while supporting carbon credit projects that improve the carbon storage capacity of ecosystems. The advantage of this method lies in its effective combination of economic tools with ecological restoration, making ecological compensation more efficient and sustainable.

Moreover, this mechanism demonstrates the practical application of the concept of ecological civilization within the judicial system. Building an ecological civilization requires not only technical and managerial support but also legal innovation and refinement. By adopting the "forestry carbon credit + ecological justice" model, the judicial system shows a strong commitment to ecological protection and offers a model that other regions can learn from.

My Recommendations: 

However, while using climate change projects to mitigate biodiversity loss is promising, there may be better methods—specifically, establishing Biodiversity Credits systems in China. Currently, despite numerous climate actions, funding for biodiversity protection projects remains relatively scarce. Therefore, I suggest implementing biodiversity protection projects as measures for ecological damage compensation. For instance, establishing special funds for restoring damaged habitats, protecting endangered species and their habitats, and creating ecological corridors would not only help restore ecosystem functions but also enhance biodiversity. This approach could effectively address the ecological losses caused by destructive activities, leading to comprehensive environmental recovery.

Investing in specific biodiversity protection projects would also promote scientific research and education, raising public awareness of the importance of biodiversity protection. By integrating these projects, we can directly improve the damaged ecological environment and lay a solid foundation for future ecological protection efforts, thus achieving long-term ecological benefits and sustainable development

(Please note: This article is a personal view. It is for information only.)

Author: Yihang Shen

Editor: Richard

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