Greenpeace says carbon fund will save forests and climate
May 20, 2008
"Protecting ancient forests is vital to tackle climate change, preserve global biodiversity, and protect the livelihoods of millions of forest peoples. Tropical forest destruction is responsible for about one fifth of global greenhouse gas emissions, more than from the world's entire transport sector," the Forests for Climate report stated.
"Industrialized countries that commit to doing their fair share in reducing energy and industrial emissions would be allowed to meet a portion of their overall commitments through the purchase of cost effective 'tropical deforestation units.' A major benefit for industrialized countries is that the units would act as hard currency for compliance purposes, since the mechanism would be responsible for delivering verifiable emission reductions."
Greenpeace says that funds generated from a Tropical Deforestation Emission Reduction Mechanism (TDERM) would be used for "capacity-building efforts and for national-level reductions in deforestation emissions." The environmental organization says that national-level reductions in emissions would help prevent "leakage" or the shifting of deforestation from one part of a country to another.
Forests for Climate
According to Greenpeace, other benefits from TDERM would include:
- Benefits to climate and biodiversity protection - directs funds to actions that will meet both climate and biodiversity objectives.
- Scale effects on the Annex I emission targets - by limiting the amount that deforestation reductions can be used by the Annex I Parties to meet their commitments, the effects on fossil fuel and other greenhouse gas emissions reductions that are needed can be quantified and limited.
- Pragmatic accounting for uncertainties — the use of the portfolio approach combined with a discount factor deals pragmatically with the uncertainties relating to emissions estimation, baselines, and permanence.
- Ensures stability of market - due to the risks associated with full access to the trading system, the TDERM would issue, in effect, compliance units to Annex I Parties which could not be challenged at price and therefore not affect the stability of the overall market.
- Full access by the widest range of countries - provides funds to the greatest number of developing countries with tropical forests, including countries with varying capacities and governance structures, differing abilities to accurately report, monitor and verify emission reductions, and countries with high and low rates of deforestation.
- Reliable source of funds - a significant and steady stream of funds would be available through the mandatory minimum commitments made by Annex I Parties as part of their overall emission reduction targets.
- Engages indigenous and forest peoples - will motivate and facilitate greater control of forest resources by indigenous and forest peoples and will start to address the problem of local communities becoming sidelined.
- Capacity building and institutional support — reliable funding will be available which can support institutional capacity building needs of developing countries.
Forests for Climate
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