Presently the LULUCF activities in the CDM are limited to afforestation and reforestation. The inclusion of reduced deforestation and forest degradation (REDD) in developing countries has a relatively large potential, compared with A/R, to contribute to the stabilization of greenhouse gases in the atmosphere. Major issues that need to be satisfactorily addressed are: how to deal with leakage (the prevention of deforestation might easily prompt deforestation elsewhere in the same country or in other countries); ensuring that payments are not made for avoiding deforestation when in fact deforestation would not have taken place; and whether including avoided deforestation projects under the CDM would not crowd out such measures by the host countries wishing to tackle deforestation themselves and to claim the benefits.7
The size of the contribution of forestry under relaxed rules and the inclusion of deforestation in developing countries is by no means certain: Chapter 1 showed that there is a wide disparity in estimates of forestry's global potential. Moreover, further investigation at the country level in Chapter 1 found serious possible constraints to implementation of projects of an economic, social and political nature. Another unknown is the impact of the future participation of the US; its demand for credits from forestry projects in developing countries could increase substantially.
Global problems such as climate change require global solutions. The contribution of forestry on a global scale to the mitigation of climate change has so far been very limited. Policies for the realization of the potential of forestry are taken up for developed countries in Chapter 7 and for developing countries in Chapter 8.
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