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Practical Issues Concerning Temporary Carbon Credits in the CDM AgEcon
Dutschke, Michael; Schlamadinger, Bernhard.
Afforestation and reforestation (AR) projects in the Clean Development Mechanism are able to create emission permits that can be accounted against the industrialized countries' commitments for limiting their greenhouse gas emissions, as agreed under the Kyoto Protocol. The discussion of how to treat credits from temporary carbon stocks is centering on the proposal for expiring emission credits from AR, which in the subsequent commitment period need to be replaced. While the basic methodological question is thus being solved, the practicalities arising from the solution have so far not been considered. The authors make new proposals on accounting modalities, define the tCER value as compared to a permanent CER, and forecast who will be the potential buyers...
Tipo: Working or Discussion Paper Palavras-chave: Clean Development Mechanism; Forestry; Environmental Economics and Policy; Q23; Q25; Q13.
Ano: 2003 URL: http://purl.umn.edu/26241
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Value and Risks of Expiring Carbon Credits from CDM Afforestation and Reforestation AgEcon
Dutschke, Michael; Schlamadinger, Bernhard; Wong, Jenny L.P.; Rumberg, Michael.
The Milan conference of the UN Framework Convention on Climate Change has established two types of emission offsets under the Clean Development Mechanism (CDM), valid for afforestation and reforestation activities. In order to account for the non-permanent nature of carbon storage in forests, these credits expire after a predefined periods, after which the buyer needs to replace them. The present article assesses their market value in relation to "permanent" credits, identifies their specific risks and proposes how to mitigate and manage them. It analyzes strengths and weaknesses of expiring credits for sellers and buyers. Taking the example of the EU emissions trading system, the authors discuss how expiring credits could reach fungibility with permanent...
Tipo: Working or Discussion Paper Palavras-chave: CDM; Afforestation; Reforestation; Permanence; Insurance; LCER; TCER; Environmental Economics and Policy; Q23; Q25; Q13.
Ano: 2004 URL: http://purl.umn.edu/26347
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