Alternative Approaches to Addressing the Risk of Non-Permanence in Afforestation and Reforestation Projects under the Clean Development Mechanism

Murray, Brian C.; Galik, Christopher S.; Mitchell, Stephen; Cottle, Phil

Alternative Approaches to Addressing the Risk of Non-Permanence in Afforestation and Reforestation Projects under the Clean Development Mechanism

Autores

Murray, Brian C.

Galik, Christopher S.

Mitchell, Stephen

Cottle, Phil

Editor

World Bank, Washington, DC

Descripción

The report provides quantitative and qualitative insights into the performance of different non-permanence approaches for consideration of parties. This note summarizes the results of the analysis presented in the report. Besides the existing mechanism for temporary crediting, the study analyzed a range of alternative approaches to addressing non-permanence, including those considered in prior deliberations of the United Nations Framework Convention on Climate Change (UNFCCC). The approaches address the risk of non-permanence in several ways. Under the tonne year accounting, credits are issued for the increments of carbon sequestered corresponding to a defined permanence period, and their quantity depends on the carbon stored in biomass each year of the permanence period. However, this approach has not been implemented by any standard. These approaches are not mutually exclusive, but can be used in tandem with each other.

Palabras clave

ABSORPTION, ACCOUNTING, ACCOUNTING FRAMEWORK, AFFORESTATION, ASSURANCE, ATMOSPHERE, ATMOSPHERIC CHEMISTRY, ATMOSPHERIC CONCENTRATIONS, BIOMASS, BONDHOLDER, BONDS, CALCULATION, CAP LEVELS, CARBON, CARBON BALANCE, CARBON CAPTURE, CARBON CREDITING, CARBON CREDITS, CARBON DIOXIDE, CARBON EMISSIONS, CARBON FINANCE, CARBON LOSS, CARBON LOSSES, CARBON MARKET, CARBON OFFSET, CARBON POOLS, CARBON PRICE, CARBON PROJECTS, CARBON REMOVAL, CARBON RESERVOIR, CARBON SINK, CARBON SINK PROJECTS, CARBON SINKS, CARBON STOCK, CARBON STORAGE, CARBONIZATION, CERTIFIED EMISSION REDUCTION, CERTIFIED EMISSION REDUCTIONS, CLEAN DEVELOPMENT, CLEAN DEVELOPMENT MECHANISM, CLIMATE, CLIMATE ACTION, CLIMATE CHANGE, CLIMATE CHANGE MITIGATION, CLIMATE DAMAGES, CLIMATE POLICY, CO, CO2, COMMERCIAL INSURANCE, COMMODITY MARKETS, CREDIBILITY, CREDIT BUYERS, CREDIT LOSS, CREDIT RESERVE, CUSTODY, DEBT, DECAY FUNCTION, DEFAULT RISK, DEVELOPING COUNTRIES, DIRECT INVESTMENT, DISCOUNT RATE, DISCOUNT RATES, DROUGHT, ECONOMIC INCENTIVE, ECOSYSTEM, EMISSION, EMISSION REDUCTION, EMISSION REDUCTION OBLIGATIONS, EMISSIONS, EMISSIONS FROM DEFORESTATION, EMISSIONS REDUCTION, EMISSIONS REDUCTION OBLIGATIONS, EMISSIONS REDUCTIONS, EMISSIONS TARGETS, ENVIRONMENTAL INTEGRITY, ENVIRONMENTAL POLICY, ESCROW, EXPENDITURES, EXTREME WEATHER, FEASIBILITY, FINANCES, FINANCIAL PERFORMANCE, FINANCIAL RETURNS, FINANCIAL RISK, FINANCIAL SUPPORT, FIRST VERIFICATION, FOREST, FOREST CARBON, FOREST CARBON STOCK, FOREST CARBON STORAGE, FOREST DEGRADATION, FOREST ECOSYSTEMS, FOREST GROWTH, FOREST LOSSES, FOREST MANAGEMENT, FOREST STAND, FOREST STANDS, FOREST TYPE, FORESTRY, FORESTRY ACTIVITIES, FORESTRY PROJECTS, FORESTS, FRAMEWORK CONVENTION ON CLIMATE CHANGE, FUNGIBLE, FUTURE PRICES, GHG, GHGS, GLOBAL GREENHOUSE GAS, GLOBAL WARMING, GLOBAL WARMING POTENTIAL, GOVERNMENT GUARANTEE, GREENHOUSE, GREENHOUSE GAS, GREENHOUSE GASES, HOLDING, HOLDING REQUIREMENTS, HOST COUNTRIES, HOST COUNTRY, INCOME, INFLATION, INFLATION RATE, INITIAL VERIFICATION, INSTRUMENT, INSURANCE, INSURANCE COVERAGE, INSURANCE PREMIUM, INSURERS, INTERNATIONAL STANDARD, INVESTMENT DECISIONS, IPCC, ISSUANCE, LAND USE, LAND-USE CHANGE, LANDHOLDER, LANDOWNER, LANDOWNERS, LEGAL OBLIGATION, LEGAL OBLIGATIONS, LEGISLATIVE FRAMEWORKS, LIABILITY, MARKET CONDITIONS, MARKET PARTICIPANTS, MARKET TRANSACTION, MATURITY, MITIGATION ACTIONS, MONETARY VALUE, MORAL HAZARD, NET CARBON SINK, OFFSET CATEGORIES, OFFSET CREDITS, OPPORTUNITY COST, OPPORTUNITY COSTS, PERFORMANCE BOND, POLITICAL UNCERTAINTY, PORTFOLIO, PRESENT VALUE, PRICE CHANGE, PRICE INCREASE, PROGRAMS, QUANTITATIVE ANALYSIS, RADIATION, RADIATIVE FORCING, REPAYMENT, RESERVE, RETURN, RISK ASSESSMENT, RISK DIVERSIFICATION, RISK FACTORS, RISK MANAGEMENT, RISK MANAGEMENT PROCESS, RISK MANAGEMENT SYSTEM, RISK PREMIUM, RISK PROFILE, SALVAGE, SAVINGS, SCENARIOS, SEQUESTERED CARBON, SEQUESTRATION POTENTIAL, SEQUESTRATION RATE, SET ASIDE, SPECTRUM OF RISK, TERRESTRIAL CARBON, TERRESTRIAL CARBON POOL, TERRESTRIAL CARBON RESERVOIRS, TERRESTRIAL CARBON SEQUESTRATION, TERRESTRIAL CARBON SINKS, TERRESTRIAL CARBON STOCKS, TERRESTRIAL CARBON STORAGE, TERRESTRIAL ECOSYSTEMS, TRADING, TRANSACTION, TRANSACTION COSTS, UNEP, VERIFICATION PERIODS, WIND, WOOD PRODUCTS, YIELD CURVES