Carbon Credits Could Prevent Deforestation in Developing Countries

Money has always been the motivator for deforestation, but a new study suggests that by introducing a carbon credit market into these developing nations, forests could be saved. When comparing the amount of carbon released by slash and burn deforestation to the amount of carbon credits that will be available in the next few years from industrialized nations researchers believe that the incentive for deforestation can be eliminated.

When analyzing the effects of deforestation, researchers found that people received $5 per ton of carbon released during deforestation. Sometimes then got less than $1 per ton of carbon. Areas that were rich in peat recouped only 10 to 20 cents a ton for carbon released. However, European nations have been paying about $35 for a one ton carbon reduction, indicating that the forests can be easily preserved with carbon credits.

"Deforestation is almost always driven by a rational response to what the market values and for some time now, it has just made more financial sense to many people in forested areas to cut down the trees," said Brent Swallow, leader of the study and Global Coordinator of the Partnership for Tropical Forest Margins. "What we discovered is that returns for deforestation are generally so paltry that if farmers and other land users were rewarded for the carbon stored in their trees and forests, it is highly likely that a large amount of deforestation and carbon emissions would be prevented."

Not only could deforestation be prevented, but certain practices could also be encouraged that help absorb carbon. Agroforestry is a viable option, which can both increase the incomes of the people employing these practices as well as absorbing more carbon.

However, the researchers acknowledge that although the solution in theory is simple, allowing participation in carbon markets by nations with large tropical forests could cause problems. The researchers contend that the risk is worth the possible reward.

"We understand that allowing people in forested regions of developing countries to participate in carbon markets presents major challenges, but it's naive to think that conservation is going to occur absent a market incentive," said Meine van Noordwijk, Southeast Asia Regional Coordinator of the World Agroforestry Centre (known by its acronym ICRAF). "Everyone has a stake in finding a way to make it work because it's hard to see how any global effort to combat climate change will succeed if it ignores a major source of the problem. Source:

Consultative Group on International Agricultural Research, "Report finds deforestation offers very little money compared to potential financial benefits", Eurekalert