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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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Can Permanence Be Insured? Consideration of Some Technical and Practical Issues of Insuring Carbon Credits from Afforestation and Reforestation AgEcon
Wong, Jenny L.P.; Dutschke, Michael.
Greenhouse gas (GHG) removals by afforestation and reforestation project activities under the Kyoto Protocol's Clean Development Mechanism (CDM) are vulnerable to a variety of risks and uncertainties, resulting in the partial or total reversal of such removals. Hence, GHG removals from these sink activities are considered to be of temporary nature and non-permanent. Specific modalities related to non-permanence will need to be developed in order to include afforestation and reforestation project activities under the CDM and for a decision on modalities to be reached at COP 9 in December 2003. Two main options on how to address non-permanence have been proposed, these being temporary credits and insurance of emission reduction credits. This paper discusses...
Tipo: Working or Discussion Paper Palavras-chave: Clean Development Mechanism; Forestry; Insurance; Permanence; Environmental Economics and Policy; Q23; Q25; Q13.
Ano: 2003 URL: http://purl.umn.edu/26270
Registros recuperados: 2
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