Forest Carbon and Local Livelihoods: Assessment of Oportunities and Policy Recomendations

Proyect implemented as part of the Clean Development Mechanism (CDM) of the Kioto Protocol will have the dual mandate of mitigating greenhouse gas emissions, and contributing to sustainable development. Basic agreement an core elements was reached in 2001, including the decision to allow afforestation and reforestation proyects. However, it is not yet clear what rules will address social concerns. Many types of proyects could potentially contribute to local livelihoods and ecosystem restoration, as well as to carbon emission offsets, including those using natural forest regeneration, agroforest improved forest fallows and agroforestry. Averted deforestation proyects with multipleuse forestry, though not eligible in the first CDM period, could be reconsidered in the future, Such proyects can be designed to rigorously meet CDM criteria for carbon impact, additionality, leakage and duration. If suitably targeted, they can be cost-effective for investors in terms of production cost. Some, however, may have higther transaction costs.