HAIKOU /China/, July 13. /TASS/. The southern Chinese province of Hainan has launched China's first program for buying and selling tropical forest carbon sinks - carbon credits that can be used to improve companies' environmental reporting and meet targets for reducing harmful emissions into the atmosphere, Hainan Daily reported.

According to the paper, the provincial forestry department this week formalized the first three deals worth 350,000 yuan ($49,000 at the current exchange rate) with three companies. They bought carbon units, an official quota that allows them to partially offset the effects of economic activities that emit greenhouse gases into the atmosphere.

The companies are in the pulp and paper, energy, and environmental technology sectors. In the future, Hainan's carbon trading is expected to make significant progress towards carbon neutrality.

One of the projects funded by these eco-credit transactions is the removal of plants that inhibit tree regeneration and growth in the Hainan Tropical Rainforest National Park in the heart of the island. The plants in question are curly vines, which have a major negative impact on the local ecology.

It is expected that eradicating these weeds will be an important measure in preserving biodiversity in the central part of the island. Their eradication will enrich the local flora and reduce carbon dioxide emissions by 109,000 tons over the next 20 years. During this period, the trade volume of tropical sinks in Hainan is expected to exceed 10 million yuan ($1.4 million).

According to the Hainan Provincial Forestry Academy, the forest carbon trading project is expected to strengthen the system of corporate and individual responsibility in achieving carbon neutrality targets. It will also stimulate conferences and other major events on relevant issues in the region and create additional opportunities for the judiciary to resolve issues related to ecological restoration.