A Carbon Stock Approach to Creating a Positive Incentive to Reduce Emissions from Deforestation and Forest Degradation in Developing Countries

The Centre for International Sustainable Development Law (“CISDL”) and the Global Public Policy Institute (“GPPI”), as accredited observers, propose for further consideration and evaluation the Carbon Stock Approach described in this submission. The Carbon Stock Approach is a possible positive incentive to reduce emissions from deforestation and forest degradation. The approach extends the principles of voluntary emission trading to forest carbon reserves in developing countries. The objective of the approach is to mobilize private sector funding for the protection of forests. It is an approach that promotes private and public participation on all levels (local, regional, international) while avoiding the need for publication-specific baselines. It allocates a finite number of carbon credits to participating countries that represent the tonnes of carbon stored in a country’s forestry resources in a base year. A portion of these forest resources are put into a reserve. The remaining areas outside the national reserve that are put under permanent protection or management will become eligible for generating credits that can be traded in the global carbon market. This creates a system that allows public and private entities in developing countries direct access to carbon finance if they establish protection systems over their forest resources. This approach may overcome a number of difficulties associated with a national baseline and credit mechanism that requires central oversight and coordination.