Critical issues and challenges in the post-2012 perspective for the possible participation of the forestry sector market for carbon credits

Abstract

The first commitment period of the Kyoto Protocol (KP) is in its conclusive phase and with it the chances for forest farms in having an active role in the carbon market too. All carbon credits coming from Land Use, Land Use Change and Forestry activities will be used free of charge by the Italian Government in order to meet the national emission reduction target established under the Kyoto Protocol. In particular, the emitting sectors excluded from the European Union Emission Trading Scheme will benefit from forest carbon credits to offset part of their emissions, while for forest owners there is not any recognition for the provided service. In order to avoid the replication of this situation in the post-2012, it is necessary that the institution and the forest stakeholders, create the conditions for forest farms to participate and obtain the benefits introduced with the establishment of the Emission Trading, within the framework of post-2012 agreement. This condition could be achieved through the institution of a national carbon market. In this perspective this paper examines the main critical issues that could affect the participation of forest farms in the market.

Keywords

• Kyoto Protocol
• Carbon market
• LULUCF
• Carbon credit
• Carbon sinks