Financing Mechanisms to Reduce Emissions from Deforestation: Issues in Design and Implementation (December 2007)
by Katia Karousakis and Jan Corfee-Morlot
This paper identifies key features and examines performance issues pertinent to the design and implementation of a fund- or market-based mechanism to RED(D). Four key features relevant to an environmentally-effective and economically-efficient financing mechanism are establishing clear goals and objectives, ensuring sufficient and long-term sources of funding, developing eligibility and prioritisation criteria, ensuring accurate and consistent monitoring and performance evaluation. The paper reviews and assesses the recent proposals for RED(D) financing mechanisms under the UN Framework Convention on Climate Change (UNFCCC) to consider how they address these features.
Incentives to Reduce GHG Emissions from Deforestation: Lessons Learned from Costa Rica and Mexico (May 2007)
by Katia Karousakis
A number of options are being proposed for an instrument to reduce GHG emissions from deforestation (RED) in developing countries, including both market and non-market based approaches. This paper focuses on the use of a market-based approach to RED, based on lessons learned and good practices from payments for Environmental Services Programmes in Costa Rica and Mexico as well as other experiences from the climate change framework.
Initial Review of Policies and Incentives to Reduce GHG Emissions from Deforestation
by Katia Karousakis
At COP-11 in Montreal (December, 2005), a two-year process was initiated to consider policy approaches and incentive options to reduce greenhouse gas emissions from deforestation in developing countries. This paper gives a brief overview of deforestation, outlining the economic concepts related to efficient land-use options and providing an introduction to some of the policy approaches and incentive options that are available to reduce emissions from deforestation. These include domestic and international approaches that have been used in the past to capture ‘forest values’ and options that have been suggested to date to capture the ‘carbon values’ associated with forests.
Forestry projects: lessons learned and implications for CDM modalities
This paper examines how additionality, baselines and leakage have been assessed for several afforestation/reforestation (A/R) projects currently underway. It identifies trends and draws lessons from this experience that could be useful when agreeing on the modalities and procedures for including A/R projects into the CDM for the first commitment period.The paper concludes that the risk of free-rider projects can be significantly reduced by incorporating relatively small changes into the definitions of additionality, baseline and baseline approach that are set to be agreed for A/R CDM projects at COP9. The importance of leakage can be reduced through careful project design and siting.
OECD Expert Meeting on Soil Organic Carbon Indicators for Agricultural Land, Ottawa, 15-18 October 2002
The Expert Meeting Summary and Recommendations are now available. The objectives of the OECD expert meeting were to reach agreement on further advancing work on developing indicators that track the state and trends in agriculture's soil organic carbon. View the Agenda, documents and proceedings
Forestry Projects: Permanence, Credit Accounting and Lifetime (Also available in French)
If the carbon stored in an afforestation or reforestation project is re-released, e.g. as a result of fire, the climate benefits of that project risk being reversed. This paper identifies the different physical risks to carbon stock reduction in forestry projects and options by which these physical risks, and associated economic risks, could be managed by project participants. This paper also examines eight different regimes that could be established to allocate credits generated by forestry CDM and JI projects. How these different crediting regimes are designed can determine whether credits generated by forestry projects represent real, measurable and long-term benefits and can also influence the economic impacts of premature carbon release from a project.
Agricultural Practices that Reduce Greenhouse Gas Emissions
This paper presents a preliminary exploration of how changes to agricultural practices can contribute to the achievement of reductions in greenhouse gas emissions in OECD countries, and an examination of some of the policies in place that encourage these practices. The practices examined are those identified by the United Nations Framework Convention on Climate Change (UNFCCC) as activities that, if more extensively used by the agricultural community, would realise a reduction in greenhouse gas emissions for comparable levels of output. The report is intended to contribute to the work on agricultural practices and greenhouse gas emissions under the Kyoto Protocol (Article 3.4), as well as the work of the OECD Joint Working Party of the Environment Policy Committee and the Committee for Agriculture. Under the Bonn Agreement of the 1997 Kyoto Protocol, changes in GHG emissions from a country's cropland management and grazing land management can be included their national emissions inventory, while under the Marrakech Accords, land use and land use change and forestry (LULUCF) principles can be considered in national reporting. With such political impetus, increasing interest is being directed towards practices that can help to reduce greenhouse gas emissions from agriculture.