Carbon, REDD Markets Set to Explode

By: Petre Williams-Raynor on October 22nd, 2009

Members of the developing world’s forestry sector were on Wednesday encouraged to take advantage of the money to be made from the multi-billion dollar carbon market.

Such a market promises to put money in their countries’ coffers while giving first world nations the opportunity to offset their carbon dioxide emissions that are fuelling a change in the world’s climate, which has potentially dire implications.

“Whether you like it or not… the carbon market is coming. You cannot ignore [it]… Take advantage of what they want,” urged Dr Andrea Tuttle, board member of the Pacific Forest Trust, speaking at a plenary session of the 13th World Forestry Congress here.

She was referring to the accelerated move toward agreement on a mechanism to reduce emissions from deforestation and degradation (REDD), on which a decision at the United Nations climate change conference in Copenhagen in December is highly anticipated.

REDD proposes to pay — whether it is governments and/or local people who are the recipients –  for preserving forests, at a time when deforestation and degradation is said to account for some 20 per cent of greenhouse gas emissions.

Tuttle was supported in her call by Tiina Vahenen of the United Nations REDD secretariat, who said that the carbon market, which was valued at US$11 billion in 2005, as of 2008 had jumped in value to US$125 billion.

The value of the REDD credit market alone, she noted, is projected to be US$45 billion.

“The forestry sector cannot afford to lose this opportunity,” Vahenen said.
The UN REDD secretariat representative was, however, quick to note that caution would need to be exercised. At the same time, she proposed that there were a number of things that would be required if REDD is to work, including:
• the integration of land use issues;
• the clarification of land tenure rights; and
• attention to the quality of forest protection.

Critical also, Vahenen said, will be measurement, reporting and verification of emissions reductions from forests and the engagement of civil society and indigenous peoples.

Tuttle was in agreement, but insisted the ball was in their court.
“Who in the world knows more about your forests than you do?” she asked.