- Download PDF - 

SEEFOR 1 (2): 69-79
DOI: http://dx.doi.org/10.15177/seefor.10-08
  

Original scientific paper

 

Opportunities and Challenges for Terrestrial Carbon Offsetting and Marketing, with Some Implications for Forestry in the UK


Maria Nijnik 1*, Bill Slee 1,  Guillaume Pajot 2


1 Socio-Economic Research Group, The James Hutton Institute,Craigiebuckler, Aberdeen, AB15 8QH, Scotland, UK
2 Gretha, Université Montesquieu-Bordeaux 4, Avenue Léon Duguit 33 608 Pessac, France

* Corresponding author: e-mail: maria.mijnik@hutton.ac.uk 

Citation:
NIJNIK M, SLEE B, PAJOT G 2010 Opportunities and Challenges for Terrestrial Carbon Offsetting and Marketing, with Some Implications for Forestry in the UK. South-east Eur for 1 (2): 69-79. DOI: http://dx.doi.org/10.15177/seefor.10-08


Cited by:        CrossRef        Google Scholar 


Abstract

Background and Purpose: Climate change and its mitigation have become increasingly high profile issues since the late 1990s, with the potential of forestry in carbon sequestration a particular focus. The purpose of this paper is to outline the importance of socio-economic considerations in this area. Opportunities for forestry to sequester carbon and the role of terrestrial carbon uptake credits in climate change negotiations are addressed, together with the feasibility of bringing terrestrial carbon offsets into the regulatory emission trading scheme. The paper discusses whether or not significant carbon offsetting and trading will occur on a large scale in the UK or internationally.
Material and Methods: The paper reviews the literature on the socio-economic aspects of climate change mitigation via forestry (including the authors’ research on this topic) to assess the potential for carbon offsetting and trading, and the likely scale of action. 
Results and Conclusion: We conclude that the development of appropriate socio-economic framework conditions (e.g. policies, tenure rights, including forest carbon ownership, and markets) and incentives for creating and trading terrestrial carbon credits are important in mitigating climate change through forestry projects, and we make suggestions for future research that would be required to support such developments.

Keywords: forestry, climate policy, carbon sequestration, carbon trading; the Clean Development Mechanism



REFERENCES

  1. THE STERN REVIEW 2006 The Economic of Climate Change. Available at:  http://www.hm-teasury.gov.uk/stern_review_report.htm (Accessed: 25/03/2011)
  2. Climate Change Committee 2010 Scotland’s path to a low-carbon economy. Available at:  http://www.theccc.org.uk (Accessed: 25/03/2011)
  3. BROADMEADOW M, MATTHEWS R 2003 Forests, carbon and climate change: the UK contribution. Forestry Commission, Edinburgh, Information Note 48, p 12
  4. CANNELL M 2003 Carbon sequestration and biomass energy offset: theoretical, potential and achievable capacities globally, in Europe and the UK. Biomass Bioenerg 24: 97–116. DOI: http://dx.doi.org/10.1016/S0961-9534(02)00103-4
  5. MATTHEWS R, ROBERTSON K 2003 Forest products and bioenergy. In: Karjalainen T, Apps MJ (eds) Carbon sequestration in the global forest sector, IUFRO Task Forces on Environmental Change state of the art report
  6. SMITH P, SMITH J, WATTENBACH M, MEYER J, LINDNER M, ZAEHLE S, HIEDERER R, JONES R, MONTANARELLA L, ROUNSEVELL M, REGINSTER I, KANKAANPÄÄ S 2006 Projected changes in mineral soil carbon of European forests, 1990-2100. Can J Soil Sci 86: 159-169. DOI: http://dx.doi.org/10.4141/S05-078
  7. BATEMAN I, LOVETT A 2001 Estimated value of carbon sequestered in softwood and hardwood trees, timber products and forest soils in Wales. Available at: http://www.uea.ac.uk/~e089/carbfinl.pdf (Accessed: 25/03/2011)
  8. NIJNIK M 2005 Economics of climate change mitigation forest policy scenarios for Ukraine. Clim Policy 4 (3): 319-336. DOI: http://dx.doi.org/10.3763/cpol.2004.0424
  9. BRAINARD J, BATEMAN I, LOVETT A 2008 The social value of carbon sequestered in Great Britain’s woodlands. Ecol Econ 68 (4): 1257-1267. DOI: http://dx.doi.org/10.1016/j.ecolecon.2008.08.021
  10. NIJNIK M, PAJOT G, MOFFAT, A, SLEE, B 2009 Analysing opportunities of British forests to contribute to climate change mitigation. European Association of Environmental and Research Economics proceedings, Amsterdam, Paper 473
  11. ROLLINSON TJD 2007 Forests and climate change: conclusions and the way forward.  In: Freer-Smith PH, Broadmeadow MS, Lynch JM (eds) Forestry and climate change, CABI, Wallingford, p 233-240. DOI: http://dx.doi.org/10.1079/9781845932947.0233
  12. NIJNIK M, BEBBINGTON J, SLEE B, PAJOT G 2009 Forestry and Climate Change: a socio-economic perspective. In: Read D J, Freer-Smith P H, Morison J I L, Hanley N, West C C, Snowdon P (eds) Combating climate change – a role for UK forests. An assessment of the potential of UK’s trees and woodlands to mitigate and adapt to climate change. The Stationery Office, Edinburgh, p 201-209
  13. READ DJ, FREER-SMITH PH, MORISON JIL, HANLEY N, WEST CC, SNOWDON P (eds) 2009 Combating climate change – a role for UK forests. An assessment of the potential of UK’s trees and woodlands to mitigate and adapt to climate change. The Stationery Office, Edinburgh
  14. NIJNIK M 2010 Carbon capture and storage in forests. Issues in Environmental Science and Technology 29: 203-238
  15. GALBRAITH D, SMITH P, MORTIMER N, STEWART R, HOBSON M, MCPHERSON G, MATTHEWS R, MITCHELL P, NIJNIK M, NORRIS J, SKIBA U, SMITH J, TOWERS W 2006 Review of Greenhouse Gas Life Cycle Emissions, Air Pollution Impacts and Economics of Biomass Production and Consumption in Scotland. SEERAD Report, p 265
  16. SNIFFER (Scotland and Northern Ireland Forum for Environmental Research) 2008 Differential Social Impacts of Climate Change in the UK, London. Available at: http://www.sniffer.org.uk/Webcontrol/Secure/ClientSpecific/ResourceManagement/UploadedFiles/UKCC22%20FinalReport web.pdf  (Accessed: 25/03/2011)
  17. UK GOVERNMENT (Department of Environment, Food and Rural Affairs) 2006 Climate Change Programme. London. Available at: http://www.official-documents.gov.uk/document/ cm67/ 6764/6764.pdf (Accessed: 25/03/2011)
  18. UK GOVERNMENT 2008 Climate Change Act. Available at: http://www.legislation.gov.uk/ukpga/2008/27/contents accessed the internet 25/03/2011 (Accessed: 25/03/2011)
  19. COMMITTEE ON CLIMATE CHANGE 2008 Building a low carbon economy: the first report of the Committee on Climate Change. TSO, London
  20. GIDDENS A 2009 The politics of climate change. Wiley: London
  21. EUROPEAN COMMISSION 2002 Environment 2010: Our Future, Our Choice. The Sixth Environment Action Programme of the European Community. In: OJ L 242, 10/9/2002
  22. ECCP 2002 Second Progress Report - Can we meet our Kyoto targets? Conclusions and recommendations. Available at: www.climnet.org/resources/.../756-second-eccp-report-qcan-we-meet-our-kyoto-targetsq-april-2003 (Accessed: 25/03/2011)
  23. NIJNIK M, BIZIKOVA L 2008 Responding to the Kyoto Protocol through forestry: a comparison of opportunities for several countries in Europe. Forest Policy Econ 10 (4): 257-269. DOI: http://dx.doi.org/10.1016/j.forpol.2007.11.004
  24. EUROPEAN COMMISSION 2003 Proposal for a directive of the European parliament amending the directive establishing a scheme for GHG emission allowance trading within the Community, in the respect of the Kyoto Protocol’s project mechanisms. SEC(2003)785, Brussels
  25. FORESTRY COMMISSION 2008 Climate change action plan 2009-2011. FC, Edinburgh. Available at:  http://www.forestry.gov.uk/pdf/fcfc124.pdf/$FILE/fcfc124.pdf  (Accessed: 25/03/2011)
  26. THE RURAL DEVELOPMENT COMPANY, EKOS, THE MACAULAY INSTITUTE AND P AND L COOK AND PARTNERS 2010 The Mid Term Evaluation of the Scottish Rural Development Programme, for the Scottish Government.
  27. GUYOMARD H, LANKOSKI JE, OLLIKAINEN M 2006 Impacts of agri-environmental policies on land allocation and land prices. Contributed paper prepared for presentation at the International Association of Agricultural Economists Conference, Gold Coast, Australia, August 12-18, 2006. Available at: http://ageconsearch.umn.edu/bitstream/25310/1/cp060526.pdfaccessed the internet 25/03/2011 (Accessed: 25/03/2011)
  28. ROYAL SOCIETY OF EDINBURGH (RSE) 2008 Committee of Inquiry onto the Future of Scotland’s Hills and Islands. Report September 2008
  29. LAND USE POLICY GROUP (LUPG) 2004 Cap Reform: Implications for Woodlands, Issues Paper. From the Woodland Policy Group with Input from the Forestry Commission. Available at: http://www.lupg.org.uk/pdf/pubs_Woodland_and_CAP_reform[1].pdf (Accessed: 25/03/2011)
  30.  VAN KOOTEN G C 2004 Climate Change Economics. Edward Elgar, Cheltenham, p 167
  31. ADGER W, DESSAI S, GOULDEN M 2008 Are there social limits to adaptation to climate change? Climatic Change 93 (3-4):335-354. DOI: http://dx.doi.org/10.1007/s10584-008-9520-z
  32. BINKLEY D, RYAN M, STAPE J, BARNARD H, FOWNES J 2002 Age-related decline in forest ecosystem growth: an individual-tree, stand-structure hypothesis. Ecosystem 5 (1): 58-67. DOI: http://dx.doi.org/10.1007/s10021-001-0055-7
  33. ROYAL SOCIETY 2002 Economic instruments for the reduction of carbon dioxide emissions. Available at: http://www.royalsociety.org/displaypagedoc.asp?id=12 (Accessed: 25/03/2011)
  34. VAN KOOTEN GC, EAGLE AJ, MANLEY J, SMOLAK T 2004 How costly are carbon offsets? A meta-analysis of carbon forest sinks. Environ Sci Policy 7 (4): 239-251. DOI: http://dx.doi.org/10.1016/j.envsci.2004.05.006
  35. NEWELL RG, STAVINS RN 2000 Climate change and forests sinks: factors affecting the costs of carbon sequestration. J Environ Econ Manag 40 (3): 211-235. DOI: http://dx.doi.org/10.1006/jeem.1999.1120
  36. STAVINS R, RICHARD K 2005 The cost of US forest-based carbon sequestration. Arlington, VA, Pew Center on Global Changes, p 52
  37. MORAN D, MACLEOD M, WALL E, EORY V, MCVITTIE A, BARNES A, REES RM, TOPP CFE, PAJOT G, MATTHEWS R, SMITH P, MOXEY M 2010 Developing carbon budgets for UK agriculture, land-use, land-use change and forestry out to 2022. Climatic Change (doi: 10.1007/s10584-010-9898-2). DOI: http://dx.doi.org/10.1007/s10584-010-9898-2
  38. ENKVIST P A, NAUCLER T, ROSANDER J 2007 A cost curve for greenhouse gas reduction. The McKinsey Quarterly, p 35-45
  39. CASPERSEN J, PACALA SW, JENKINS JC, HURTT GC, MOORCROFT PR, BIRDSEY RA 2000 Contributions of Land-Use History to Carbon Accumulation in US Forests. Science 290 (5494): 1148-1151. DOI: http://dx.doi.org/10.1126/science.290.5494.1148
  40. VAN KOOTEN GC, EAGLE AJ 2005 Forest carbon sink: a temporary and costly alternative to reducing emission for climate change mitigation. In: Kant S, Berry RA (eds) Sustainability, Institutions and Natural Resources: Institutions for Sustainable Forest Management. Springer, p 233-255. DOI: http://dx.doi.org/10.1007/1-4020-3519-5_11
  41. SLANGEN L, VAN KOOTEN G, VAN RIE P 1997 Economics of Timber Plantations on CO2 Emissions in the Netherlands. Tijdschrift van de Landbouw 12 (4): 318-333
  42. PUSSINEN A, KARJALAJNEN T, KELLOMAKI S, MAKIPAA R 1997 Potential Contribution of the Forest Sector to Carbon Sequestration in Finland. Biomass Bioenerg 13 (6): 377-387. DOI: http://dx.doi.org/10.1016/S0961-9534(97)10048-4
  43. ECCM 2004 Impacts of Climate Change on Scotland, Adaptation to Climate Change, Mitigation of Scotland’s Greenhouse Gas Emissions. Environment and Rural Development Committee, ERD/S2/05/3/1e
  44. MORAN D, MACLEOD M, WALL E, EORY V, PAJOT G, MATTHEWS R, MCVITTIE A, BARNES A, REES B, MOXEY A, WILLIAMS A 2008 UK marginal abatement cost curves for the agriculture and land use, land use change and forestry sectors out to 2022, with qualitative analysis of options to 2050. Final Report to the Committee on Climate Change, RMP4950, p 152
  45. GLOBAL ATMOSPHERE DIVISION 1999 Sequestration of Carbon Dioxide, Paper to the British Government Panel on sustainable development sequestration of carbon dioxide, London. Available at: http://www.sd-commission.org.uk/panel-sd/position/co2/index.htm (Accessed: 25/03/2011)
  46. SCOTTISH EXECUTIVE 2006 The Scottish Forestry Strategy. Scottish Executive, Edinburgh. Available at: http://www.forestry.gov.uk/pdf/SFS2006fcfc101.pdf/$FILE/SFS2006fcfc101.pdf (Accessed: 31/03/2011)
  47. DEFRA 2007 A strategy for England's trees, woods and forests. DEFRA, London
  48. PAJOT G 2008 The social costs of carbon sequestration in forestry: the case of the south western French forest. Scandinavian Forest Economics 42: 378-390
  49. REGIONAL DEVELOPMENT AGENCIES 2007 Tackling climate change in the regions. Available at: http://www.eeda.org.uk/files/tackling_Climate_Change.pdf (Accessed: 25/03/2011)
  50. DANA S 1943 Multiple use, biology and economics. J Forestry 41: 625-627
  51. PEARSON GA 1944 Multiple use in forestry. J Forestry 42: 243-249
  52. PAJOT G, MALFAIT JJ 2008 Carbon sequestration in wood products: Implementing an additional carbon storage project in the construction sector, The European Forest Based Sector: Bio-Responses to Address New Climate and Energy Challenges. Nancy, France, 6-8th November
  53. UNFCCC 1998 The Kyoto Protocol to the Convention on Climate Change. UNEP/IUC
  54. IPCC 2007 Climate Change: Mitigation. Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, by Metz B, Davidson OR, Bosch PR, Dave R, Meyer  A (eds), Cambridge. Available at: http://www.ipcc.ch/ (Accessed: 25/03/2011)
  55. SPASH CL 2010 The Brave New World of Carbon Trading. New Polit Econ 15 (2): 169-195. DOI: http://dx.doi.org/10.1080/13563460903556049
  56. UNEP 2010 Capacity Development for the Clean Development Mechanism. Available at: http://cdmpipeline.org/cdm-projects-type.htm (Accessed: 25/03/2011)
  57. CHOMITZ KM 2000 Evaluating carbon offsets from forestry and energy projects: how do they compare? Development research group, The World Bank, №2357. Available at: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/06/27/000094946_0006130535049/additional/116516322_20041117154033.pdf (Accessed: 25/03/2011)
  58. TAIYAB N 2006 Exploring the market and voluntary carbon offsets. International Institute for Environment and Development, London, p 36
  59. HAMILTON K, BAYON R, TURNER G, HIGGINS D 2007 State of the Voluntary Carbon Market. Washington D. C and London: Picking up steam. Available at: http://ecosystemmarketplace.com/documents/acrobat/StateoftheVoluntaryCarbonMarket18July_Final.pdf  (Accessed: 25/03/2011)
  60. THE HOUSE OF COMMONS, ENVIRONMENTAL AUDIT COMMITTEE 2007 The Voluntary Carbon Offset Market, Sixth Report of Session 2006-2007, London
  61. MARLAND G, FRUIT K, SEDJO R 2001 Accounting for sequestered carbon: The question of permanence. Environ Sci Policy 4 (6): 259-268. DOI: http://dx.doi.org/10.1016/S1462-9011(01)00038-7
  62. SUBAK S 2003 Replacing Carbon Lost from Forests: an Assessment of Insurance, Reserves, and Expiring Credits. Clim Policy 3 (2): 107-122. DOI: http://dx.doi.org/10.1016/S1469-3062(03)00033-0 and http://dx.doi.org/10.3763/cpol.2003.0315
  63. UNFCCC 2006 Japan marks the Protocol's entry into force on 16 February 2004. Bonn. Available at:  http://www.unfccc.int/2860.php (Accessed: 25/03/2011)
  64. VAN KOOTEN G C 2009 Biological carbon sink: Transaction costs and governance.  Forest Chron 85 (3): 372-376
  65. DEFRA 2007 UK Biomass Strategy. Available at: http://www.decc.gov.uk/assets/decc/what%20we%20do/uk%20energy%20supply/energy%20mix/renewable%20energy/explained/bioenergy/policy_strat/1_20091021164854_e_@@_ukbiomassstrategy.pdf (Accessed: 31/03/2011)
  66. HM GOVERNEMENT 2009a The UK Low Carbon Transition Plan. Available at:  http://www.decc.gov.uk/assets/decc/White%20Papers/UK%20Low%20Carbon%20Transition%20Plan%20WP09/1_20090724153238_e_@@_lowcarbontransitionplan.pdf (Accessed: 31/03/2011)
  67. HM GOVERNMENT 2009b The UK Renewable Energy Strategy. Available at:  http://www.decc.gov.uk/assets/decc/What%20we%20do/UK%20energy%20supply/Energy%20mix/Renewable%20energy/Renewable%20Energy%20Strategy/1_20090717120647_e_@@_TheUKRenewableEnergyStrategy2009.pdf  (Accessed: 31/03/2011)
  68. FORESTRYCOMMISSION (FC) 2011 Woodland Statistics.  Available at: http://www.forestry.gov.uk/forestry/infd-7aqknx (Accessed: 01/04/2011)
  69. FORESTRY COMMISSION SCOTLAND 2009 The Scottish Government’s Rationale for Woodland expansion. Available at: http://www.forestry.gov.uk/pdf/ForestExpansion.pdf/$FILE/ForestExpansion.pdf (Accessed: 31/03/2011)
  70. CLIMATE CHANGE COMMITTEE 2010 Scotland’s Path to a Low-Carbon Economy, Committee for Climate Change, London
  71. JIANG T, HANSLOW K, PEARCE D 2009 On-Farm Impacts of an Australian ETS: An Economic Analysis. Report prepared for the Australian Government, Rural Industries Research and Development Corporation
  72. SLEE B 2011 Innovation in forest related territorial goods and services: an introduction. In: Weiss G et al. (eds) Innovation in Forestry: Territorial and Value Chain Approaches, CABI Wallingford. DOI: http://dx.doi.org/10.1079/9781845936891.0118

 

© 2015 by the Croatian Forest Research Institute. This is an Open Access paper distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0).