A new guidebook for forest carbon project
developers and financiers aims to help kick-start the sector. “Bringing
forest carbon projects to market” recognises a much under-utilised
sector of carbon reduction effort and identifies opportunities for
profitable forest carbon project development.
The guide was
authored by a team at French environmental consultants ONF
International and funded by UN Environment Programme’s Department of
Technology, Industry and Economics, the UNEP Risoe Centre, the French
Development Agency (AFD), and the World Bank’s BioCarbon Fund.
It runs through the types of project activities - afforestation and reforestation (
A/R),
REDD,
improved forest management, biomass energy - and identifies the various
carbon markets and mechanisms available. Section 3 of the report offers
a comprehensive nuts and bolts guide for developing a forest carbon
project, addressing set-up, costs, risks, financing, revenue potential,
credit generation and sales. The guide uses a number of case studies to
illustrate best practice, success stories and pitfalls.
While
acknowledging the slow take-off of forest carbon action compared to
other project types in the carbon market, the combination of project,
methodology and standards innovation in the voluntary market, along
with the moves toward a compliance-based REDD+ mechanism under UN
auspices from 2013, offers potential for a dramatic increase in this
market segment, the guide concludes.
Its survey of the market
found 434 forest carbon projects across all types either registered or
seeking registration, up from 178 in 2007. It found 31 per cent had
achieved either achieved registration with an independent forest carbon
standard, or was applying for registration.
While the nature of a future global
REDD+
mechanism under the UN is still unclear, the report looks at the
possible forms it could take including or excluding the private sector.
This is of particular importance to project developers given the
uncertainty over the role of project-based activity (along the lines of
the voluntary market) in a structure that appears increasingly headed
towards nationally administered programmes.
The progress of US federal climate laws and the finalisation of the
EU ETS
rules for its third phase from 2013 also stand to be important for the
development of the forest carbon market, the report says.
The
English version has just been released, following the French release
earlier this year. A Spanish version is also to be available.
Download
Bringing forest carbon projects to market [PDF 5.8 MB]
English
French