The Potential of Carbon Offsetting Projects in the Forestry Sector for Poverty Reduction in Developing Countries



The international carbon market – comprising both the regulated national, regional, and international markets resulting from the implementation of the Kyoto Protocol and the voluntary trade of carbon offsets by individuals, companies, NGOs, and governments outside the Kyoto framework – is currently considered the most important new and additional source of development finance, valued at US$126 billion in 2008 and potentially exceeding USD$50–120 billion/year in the long term (Capoor and Ambrosi 2009). Given the great potential for the implementation of alternatives to mitigate carbon emissions in the Land Use, Land Use and Forestry (LULUCF) sector in the tropics and the fact that over 70% of the world’s poor are located in rural areas, great expectations have been put on the capacity of this innovative source of funding to support rural poverty reduction initiatives in developing countries.


Clean Development Mechanism Carbon Market Forestry Project European Union Emission Trading Scheme Carbon Project 
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© Springer Science+Business Media, LLC 2012

Authors and Affiliations

  1. 1.Independent Climate Change ConsultantMexicoUSA
  2. 2.School of International DevelopmentUniversity of East AngliaNorwichEngland

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