Land Use,Land-Use Change,Forestry, and Agricultural Activities in the Clean Development Mechanism: Estimates of Greenhouse Gas Offset Potential

Activities involving land use, land-use change,forestry, and agriculture (LUCF) can help reducegreenhouse gas (GHG) concentrations in the atmosphereby increasing biotic carbon storage, by decreasing GHGemissions, and by producing biomass as a substitutefor fossil fuels. Potential activities includereducing rates of deforestation, increasing landdevoted to forest plantations, regenerating secondaryforest, agroforestry, improving the management offorests and agricultural areas; and producing energycrops.Policymakers debating the inclusion of a variety ofLUCF activities in the Clean Development Mechanism(CDM) of the Kyoto Protocol need to consider themagnitude of the carbon contribution these activitiescould make. Existing estimates of the cumulative GHGoffset potential of LUCF activities often take aglobal or regional approach. In contrast, land-usedecisions are usually made at the local level anddepend on many factors including productive capacityof the land, financial considerations of thelandowner, and environmental concerns. Estimates ofGHG offset potential made at a local, or at mostcountry, level that incorporate these factors may belower, as well as more useful for policy analyses,than global or large regional estimates. Whilecountry-level estimates exist for forestry activities,similar estimates utilizing local information need tobe generated for agricultural activities and biofuels,as well as for the cumulative potential of all LUCFactivities in a particular location.     

Issues and challenges for forest-based carbon-offset projects: A case study of the Noel Kempff climate action project in Bolivia

The Noel Kempff Climate Action Project in Bolivia, nowin its third year, is breaking ground to establishcredible and verifiable methods to quantify greenhousegas (GHG) benefits of land-use change and forestry (LUCF)projects. Developed under the United Nations FrameworkConvention Climate Change (FCCC) Activities ImplementedJointly pilot phase, the project conserves naturalforests that would otherwise have been subjected tocontinued logging and future agricultural conversion.Carbon (C) monitoring began with a C inventory of theproject area in 1997. The total amount of C in theproject area was 118 Tg (Tg = 10¹²g) ± 4%(95% confidence interval). Periodic monitoring ofrelevant C pools (occurring in 1999 and every 5 yrthereafter) occurs over the 30-year life of theproject to establish the difference between thewith-project and projected without-project scenarios. Permanent sample plots were established both insidethe project area to monitor changes in C pools overtime and in a proxy logging concession near theproject area to determine changes in C pools inforests that have been impacted by logging. Ground-based monitoring is complemented by datacollection on forest industry trends and land-usechange patterns. Remote sensing was used to developa vegetation stratification map of the area, and workis ongoing to investigate the potential application ofdual-camera aerial videography to improve theefficiency of monitoring over time.     

Environmental degradation and remediation: is economics part of the problem?

It is argued that standard environmental economic and 'ecological economics', have the same fundamentals of valuation in terms of money, based on a demand curve derived from utilitymaximization. But this approach leads to three different measuresof value. An invariant measure of value exists only if the consumer has 'homothetic preferences'. In order to obtain a numerical estimate of value, specific functional forms are necessary, but typically these estimates do not converge. This is due to the fact that the underlying economic model is not structurally stable.According to neoclassical economics, any environmental remediation can be justified only in terms of increases in consumer satisfaction, balancing marginal gains against marginal costs. It is not surprising that the optimal policy obtained fromthis approach suggests only small reductions in greenhouse gases.We show that a unidimensional metric of consumer's utility measured in dollar terms can only trivialize the problem of global climate change.