Irrespective of the outcome of the climate change negotiations in Copenhagen, the stage is set for creation a forestry carbon market, says Pavan Sukhdev, study leader, The Economics of Ecosystem and Biodiversity (TEEB).
Estimated at $30-110 billion annually by 2015, the carbon market is expected to be developed under a UN proposal of reduced emissions from deforestation and degradation (REDD), which provides for rewarding developing countries for protecting forests. The United Nations Environment Programme hosts TEEB with financial support from the European Commission.
The proposal is getting support from both developing and developed countries. The reasons are obvious. Curbing deforestation is the simplest way to reduce greenhouse gas emissions substantially. Deforestation is estimated to contribute 20% of carbon dioxide (CO2) emissions worldwide, as per the IPCC. Developed countries are supporting the proposal because it can help them offset greenhouse gas emissions in developing countries easily than back home. India has been pushing for REDD-plus, which calls for financial support for reforestation and afforestation as well. It is because India has been already able to check deforestation and stands to gain little from REDD only. Forests are estimated to spread over 20.6% of the countrys area and house 6,662 million tonne of carbon. The ministry of environment and forests has estimated the countrys forest sink at $120 billion, assuming a modest price of $5 per tonne of CO2. The Indian REDD-Plus proposal is getting support from countries like China. Eventually even countries like Brazil, which are in favour of REDD, are also expected to extend support to REDD-Plus because its in their long-term interest.
Source: The Financial Express
Published on 4 December 2009