This briefing paper unravels the implications of setting a historical baseline with a correction factor for low deforestation countries. It also explains why carbon markets are unlikely to raise the anticipated funds for forest protection, due to the unsuitability of applying these policy mechanisms to forests, and why any funds raised are unlikely to reach Central Africa or other regions with low deforestation rates and weak governance. Wider institutional and policy reforms, which are crucial to tackling deforestation effectively, would be better addressed by a funding mechanism which does not involve the trading of carbon.
Categories: Briefing Notes, Carbon trading