The Ecosystem Marketplace's V-Carbon News
Carbon beyond Kyoto... Carbon for the Rest of us

In mid- October, the World Wildlife Fund (WWF) hosted a public symposium on Reducing Emissions from Deforestation (RED). To the untrained eye, the meeting may have appeared to be yet another group of policy wonks picking through the many technical and political details that surround the climate change debate. However, for many of the participants this, "Kathryn Fuller Science for Nature Symposium on Reducing Emissions from Deforestation" represented a perhaps critical shift in the perception of the role of forests in mitigating greenhouse gases. Historically, WWF has been a powerful voice arguing in favor of limiting the role of forests in global carbon markets. However, recently the NGO's position has evolved and the two day symposium highlighted the extent to which the "Panda" is now embracing the connection between forests and the carbon markets. "We are not the same organization we were ten years ago. Our approach to climate and forests has evolved." WWF's President, Carter Roberts, explained, "We are now moving and advancing a new program that...addresses some of the technical and political issues and that covers this whole question of how to bring forests into the post- Kyoto negotiations."

The title of the event and fact that it was focused on "reducing emissions from deforestation" highlights another important trend for the role of forests in the carbon markets: The increasingly accepted argument that forests are important not just as carbon sinks but also that deforestation is also a major source of greenhouse gas emissions.

In the lead up to the upcoming UN Framework Convention on Climate Change (UNFCCC) meetings in Bali, Indonesia, both proponents and critics of including RED (also often referred to as REDD, reducing emissions from deforestation and degradation) as an approved methodology in the Kyoto markets are sharpening their arguments in anticipation that RED will be a key topic at the event. But Bali isn't the only forum in which the role of forests in climate is being discussed. Indeed, the issue is becoming increasingly relevant for the non- Kyoto markets as well. For instance, on October 25 the California Air Resources Board (CARB) endorsed the California Climate Action Registry's Forest Protocols. Mary Nichols, Chairman of the Air Resources Board explained "Adopting these protocols also puts California's forests front and center within the growing global carbon market. Investment in this market will lead to forestry management projects that both store carbon and benefit California's wildlife and watersheds."

And avoided deforestation is also on the agenda of the voluntary carbon markets. Voluntary carbon markets have been transacting avoided deforestation credits since 1990, but, partially in response to critics, the market has now diversified. Now, as Kyoto and the other regulated carbon markets tackle the issue, these experiences will become increasingly relevant. For an in-depth look at one particular struggle to sell avoided deforestation credits in the voluntary market, check out an opinion piece written by John- O Niles for the Ecosystem Marketplace. In it he tells the story of how the leaders of Aceh, Indonesia re trying to harness the power of carbon finance as a means of conserving forests.

Read on the get the latest on RED, the Nobel Peace Prize, Ebay offsets, new U.S. climate legislation and more...

—The Editors

For comments or questions, please email: vcarbonnews@ecosystemmarketplace.com