A new financial mechanism to help combat climate change by getting funds flowing into forest carbon credits is under development and could be launched by spring next year.
Forest deforestation and degradation contributes to approximately 20 percent of global greenhouse gas emissions per year, and so protecting forests has the potential to have one of the largest and most immediate impacts on climate change.
Forest carbon credits hope to provide incentives to do just that. They are generated by initiatives and projects that reduce deforestation, plant new trees and promote carbon-conscious land management — all of which results in a reduction of carbon dioxide emissions. Each ton of CO2 not emitted translates into one carbon credit, which can then be traded on either the voluntary or compliance carbon markets, enabling governments and companies to meet their carbon emission allowances or voluntary targets.