The Emerging Market for Forest and Land-Use Carbon

Human-induced climate change caused by greenhouse gas emissions is impacting the earth’s ecosystem stability through effects such as ocean acidification, thawing of permafrost regions, shrinking sea ice, increased incidence of extreme weather, and shifting precipitation patterns1. These negative climate change impacts are expected to cost the world between 5% and 20%2 in GDP annually beginning in 2011 and thereafter.

Forest and land-use change contribute significantly to emissions through greenhouse gases (GHGs) released during deforestation and soil disturbance. Deforestation, after accounting for re-growth and afforestation/reforestation, accounts for 17.4% of global greenhouse emissions and the agriculture sector accounts for another 13.5%. To put these volumes into context, the forestry sector alone generates more carbon dioxide emissions than the entire transport sector, a level comparable to the annual carbon dioxide (CO2) emissions of the U.S. or China (given that the current GHG emissions are almost equal). A study recently released by a large group of leading climate scientists found that forest growth sequesters more carbon and deforestation releases more carbon than previously understood.

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