Eastern Highlands Governor, Malcolm Kela-Smith, states that Papua New Guinea’s Office of Climate Change and Carbon Trading (OCCCT) “is illegal and established without due regard for existing mandates”, according to an article in The National on 15 February 2009. Kela-Smith warned landowners and provincial governments not to enter into any deals solicited by the OCCCT.
On Tuesday, 9 December 2008, I visited the Sheraton Hotel for an event titled “Making Forests Competitive: Practical solutions for permanence”. Organised by the legal firm Norton Rose, in association with the UNEP Finance Initiative and Carbon Markets and Investors Association, the event looked at the possibilities for the insurance industry to insure forest carbon.
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.
In a new response to the ‘Eliasch Review’, the London-based Overseas Development Institute has warned that ‘capacity strengthening’ of long-neglected forestry institutions in order to undertake REDD programmes could take ‘decades’.