Financing CFM through REDD

The Technology and Sustainable Development section of the Clean Technology and Environmental Policy Group, University of Twente, is working on a project financed by Netherlands Development Cooperation entitled “Kyoto: Think Global, Act Local” which will run from 2003 to 2009. The project is investigating the potential for carbon finance to support community forest management

Carbon Finance Schemes - Incentives for Forest and Agroforestry Systems

Deforestation contributes a quarter of all anthropogenic greenhouse gas emissions. On the island of Sulawesi in the vicinity of the Lore Lindu National Park, smallholders contribute to deforestation processes with their agricultural practices, specifically with cocoa plantations. This study assesses the impact of carbon sequestration payments for forest management systems on the prevailing land use systems. Additionally, the level of incentives which induces farmers to adopt sustainable agroforestry practices is determined. We show that low carbon credit prices have a small impact on household income. However, with rising prices, the poorest households can realise an increase of 18 percent. The majority of the households have an incentive to adopt the more sustainable shade intensive agroforestry system and stop deforestation activities with prices observed on markets. The cost-efficiency of avoided deforestation, compared to biofuels, is demonstrated. The study shows that forestry activities provide an important opportunity as climate mitigation strategies

Carbon Finance II: Investing in Forests for Climate Protection

Carbon Finance II: Investing in Forests for Climate Protection is a collection of lectures given during the 2008-2009 Carbon Finance Speaker Series at the Yale School of Forestry & Environmental Studies. The annual series is hosted by the Center for Business and the Environment at Yale and supported by the Emily Hall Tremaine Foundation and the Henry P. Kendall Foundation. The 2008-2009 speaker series focused on forest carbon and the opportunities and obstacles to including forests in greenhouse gas emission reduction policies, carbon markets, and cap-and-trade systems

Carbon Finance: Its Implication Against the Untoward Effect of Climate Change Due to Industrialization and Urbanization

Climate change has become the most important issue across the globe now-a-days. It creates a major risk to the global economy, affecting the wealth of societies, the availability of resources, the price of energy, and the value of financial sectors. It has become one of the most financially significant environmental concerns that the present world is facing. Carbon finance is a new branch of environmental finance which explores the financial propositions of carbon controlled world. Emissions of green house gases due to industrialization and urbanization bring a significant impact in the environmental issues and environmental consciousness is taking its shape in various dimensions in today’s complex business world. Realizing the importance and extent of carbon finance in the present world, in this study, we focused on the mechanisms that help the countries meet their emission reduction obligations in the context of environmental risk mitigation, likely, clean development mechanism, reducing emissions from deforestation and forest degradation, adaptation to adverse and severe weather etc. At the same time we have discussed about the importance of financial services and role of financial sectors to combat the unwanted effect of climate change as well as to support the society to meet the challenge of climate change. Keywords: Carbon finance, climate change, green house gas, clean development mechanism, reducing emissions from deforestation etc

Carbon finance and the carbon market in China

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Protecting tropical forests from the rapid expansion of rubber using carbon payments

Expansion of Hevea brasiliensis rubber plantations is a resurgent driver of deforestation, carbon emissions, and biodiversity loss in Southeast Asia. Southeast Asian rubber extent is massive, equivalent to 67% of oil palm, with rapid further expansion predicted. Results-based carbon finance could dis-incentivise forest conversion to rubber, but efficacy will be limited unless payments match, or at least approach, the costs of avoided deforestation. These include opportunity costs (timber and rubber profits), plus carbon finance scheme setup (transaction) and implementation costs. Using comprehensive Cambodian forest data, exploring scenarios of selective logging and conversion, and assuming land-use choice is based on net present value, we find that carbon prices of $30-$51 per tCO2are needed to break even against costs, higher than those currently paid on carbon markets or through carbon funds. To defend forests from rubber, either carbon prices must be increased, or other strategies are needed, such as corporate zero-deforestation pledges, and governmental regulation and enforcement of forest protection

Carbon Finance: Environmental Market Solutions to Climate Change

Edited by Bryan Garcia and Eric Roberts of the Center for Business and the Environment at Yale, this book presents the opinions and trend-setting experiences of leading practitioners in global carbon markets and finance on the business of climate change.This publication contains both practical information and thoughtful analyses relevant to the asset management, hedge funds, insurance, investment banking, philanthropy, private equity, and venture capital arenas, among others.It is a resource for academic institutions, business professionals, entrepreneurs, institutional investors such as endowment and pension fund managers, market makers, non-profit organizations, foundations, policy-makers, and anyone else seeking to understand how finance can accelerate solutions to climate change