| Summary: | Deforestation contributes approximately 20 percent of global annual carbon dioxide
(CO2) emissions. Increased CO2 is thought to contribute to increased global temperatures.
Proposals have been brought forward to use carbon finance to compensate developing
countries for reducing emissions from deforestation and degradation (REDD).
International negotiations at the UN Climate Change Convention in Copenhagen in
December 2009 will determine if REDD Offsets will be included in a post-Kyoto
Protocol framework. At the time of writing, Canada proposes to achieve a 20 percent
reduction in greenhouse emissions below 2006 levels by 2020 through an intensity based
cap-and-trade scheme. International forestry-based offsets are specifically excluded from
the proposed Canadian regulatory scheme. The international demand for REDD Offsets
will likely grow with acceptance under the proposed US scheme, and others. With proper
regulations, international REDD Offsets could be included in the proposed Canadian
regulatory system providing benefit to regulated entities and the developing world.
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