Allowing carbon credits from forests to be traded under the European Union Emissions Trading Scheme (ETS) would create a enormous loophole, allowing EU Member States to buy their way out of emissions reductions.
The EU outlined its plans for carbon markets in relation to forests at a press conference today (5 December 2008) in Poznan. The EU aims “to halve the total forested area loss in the tropics by 2020, and to halt the global forest cover loss completely by 2030 at the latest” and estimates that this…
One of the key issues related to REDD is that of risk. All trade carries an element of risk, but there is general agreement that the risks associated with forest carbon trading might be substantial, and possibly unresolvable, at least in the short term.
“For many the term ‘REDD’ has become synonymous with a carbon financing approach where reducing emissions from forests by developign country actors is supported by developed country actors buying carbon credits, potentially to meet their own emissions reduction obligations.”
On the eve of the Poznan UNFCCC Conference of Parties, even pro-market and cautious expert groups are starting to sound alarm bells about the possible impacts of cheap ‘offsets’ on existing carbon markets.