Issues in Forest Carbon Crediting
DOUGLAS BRADLEY
Domtar Inc.
Canada
While the Kyoto Protocol was primarily a ghg emissions reduction agreement, forest sequestration offsets were allowed for new forests, and Article 3.4 allowed for inclusion of offsets from existing forests and agricultural activities. Many forest management activities are documented in scientific papers as sequestering incremental carbon, including pest and disease control, thinning and tree improvement. Carbon trades have already occurred for reduced impact logging and reduced tillage.
Several factors have prevented meaningful market activity. A lack of guidelines on forest carbon crediting and trading has forced buyers of carbon offsets to establish their own, hindering effective trading. There is confusion around the term “business as usual” which is difficult to assess, is often meaningless, and leads to paradoxes. An effective way to account for carbon in plantations and other forestry activities is a methodology proposed by M. Kirschbaum et al, whereby carbon uptake is credited equally and annually over a period until the new long-term carbon storage level is reached. This method eliminates the problems associated with repeated buying and selling of credits over several rotations, and also reduces the need for costly annual measurements.
This methodology has been applied to Domtar’s juvenile spacing activity 1991-2000, and the results are being reviewed by Clean Air Canada Inc for effectiveness in carbon trading. Similarly, Domtar’s jack-pine budworm spray program for forest protection is about to undergo the same review process. It is anticipated that risks associated with crediting emissions reductions for forest management projects that have short term emissions will be managed using a pool of offsetting forestry projects.
In New Zealand, Dr. Ken Skogg presented an analysis for US waste which showed that 24-28% of carbon in wood products remains as stored carbon in perpetuity, supporting the notion that the wood products carbon pool is increasing in size. This notion is supported by analysis from the EFI website.
Because of the carbon sequestering potential of forest management and wood products, these areas should not be ignored in future climate change agreements or in policy. Uncertainty in the agreement regarding forest management is keeping the price of forest carbon artificially low, hindering an increase in this activity. To promote these activities will require;
- putting forests and forestry into the Kyoto Protocol
- standard carbon accounting system(s)
- understanding and acceptance of forest measurement techniques (sample plots)
- use of amortization methodologies
- recognition of 1991-2007 activities