Chapter Eight focuses on the carbon offset scheme in China, with a particular emphasis on forestry carbon sequestration, which is a critical element of the nature-based solution to meet carbon neutrality requirements. This chapter examines the substantive and procedural requirements that support the functionality of the domestic carbon offset scheme. However, the existing regulatory framework for the offset scheme does not fully support the proliferation of forestry offset projects. The chapter identifies the challenges that affect the development of forestry carbon sequestration projects. To address these challenges, improvements are needed in the parameters of the methodologies and admission standards for new projects. Additionally, the legal ambiguity concerning the ownership of forestry carbon sinks needs clarification.