Corporate buyers of forestry carbon offsets overwhelmingly prefer those that reduce emissions from deforestation and forest degradation (REDD) – but they are also leery of investing too heavily in projects that may not be sanctioned by compliance regimes, according to a new study by EcoSecurities, ClimateBiz, Conservation International (CI), and the Climate, Community and Biodiversity Alliance (CCBA). Johannes Ebeling of EcoSecurities discusses the findings.
21 April 2009 | Over the past few years, forestry offsets – or carbon offsets that generate carbon reduction credits by reducing emissions from deforestation and forest degradation (REDD) – have gone from hero to zero and, finally, back to hero again (a v-shaped curve well-documented in Ecosystem Marketplace's annual State of the Voluntary Carbon Report, the next edition of which is due out in May).
That means plenty of new corporate buyers have been entering the market for the first time, and their views are critical if project developers and other offset providers are to meet the demand.
Offset provider EcoSecurities, together with ClimateBiz, Conservation International (CI), and the Climate, Community and Biodiversity Alliance (CCBA) recently surveyed 120 corporate buyers of forestry offsets and published their findings in a report entitled Forest Carbon Offsetting Trends, which found that:
•The overwhelming majority of potential buyers (91%) of forestry offsets consider avoided deforestation the most desirable forestry projects in regards to carbon results, while reforestation with native tree species came in a close second;
•South America (78%), Africa (71%) and South East Asia (69%) are the three most desirable regions to purchase forest carbon credits;
•The Clean Development Mechanism (64%) and the Voluntary Carbon Standard (60%) were rated as the most desirable standards when purchasing forest carbon offsets;
•Participants highlighted the most important factor when purchasing forest offsets are carbon standards (91%), closely followed by experience and credibility (87%);
•In comparison to Europe (19%), companies in North America (50%) are much more willing to pay up front for carbon credits that will be generated more than five years from now;
•Benefits to local communities (89%) and the global scale of the problem (77%) have been the key motivational factors for adopting offsets from forest carbon projects.
On the eve of the report's publication, EM's Kate Hamilton, who co-authors the annual State of the Voluntary Carbon Market, caught up to Johannes Ebeling of EcoSecurities on day three of the
14th Katoomba Meeting in Mato Grosso
, Brazil. Click below to hear the interview:
Steve Zwick edits Ecosystem Marketplace. He can be reached at firstname.lastname@example.org.
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