Will the global Forestry Carbon Market go REDD?
While nearly $150 million has been spent to date on carbon offsets from planting trees and preserving forests, the market is in a precipitous position over limitations in the CDM for forestry projects. However, the industry got a boost at the Copenhagen talks, when nations promised a $3.5 billion international scheme to reduce emissions from deforestation and degradation (REDD), with the U.S. alone pledging $1 billion, according to Reuters reports.
A recent report published by ICF consulting and UNEP proposed that Public and Private sector carbon market buyers and investors can play complimentary roles in fostering investment in REDD activities. While public buyers are essential to engage governmental and public agencies, the private sector has limitless opportunities either as projects financiers or carbon credits buyers, and private sector activity will definitely have a role to play in growing the collective capacity to identify, develop and sustain REDD activities.