Resource title

Value and Risks of Expiring Carbon Credits from CDM Afforestation and Reforestation

Resource image

image for OpenScout resource :: Value and Risks of Expiring Carbon Credits from CDM Afforestation and Reforestation

Resource description

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 emission allowances on domestic markets.

Resource author

Michael Dutschke, Bernhard Schlamadinger, Jenny P. Wong-Leung, Michael Rumberg

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19262

Resource license

Adapt according to the presented license agreement and reference the original author.