Alternative approaches to addressing the risk of non-permanence in afforestation and reforestation projects under the Clean Development Mechanism



Filename: approaches_to_addressing_the_risk_of_non-permanence_in_ar_cdm_activities_summary.pdf
Size: 723.44 KB


  • Approaches to address non-permanence risk need to remedy the limitations of temporary credits issued to A/R CDM projects;
  • Alternative approaches to address non-permanence risk have already been approved in the modalities and procedures of CCS projects;
  • Reversal risk approaches applied elsewhere merit consideration in the development of modalities and procedures for addressing the risk of non-permanence in A/R CDM projects;
  • Choice among approaches and combinations of approaches to addressing the reversal risk provide projects with flexibility but will require regulatory guidance; 
  • Approaches relevant to A/R projects are also pertinent for addressing reversal risks in reducing emissions from deforestation and forest degradation, agriculture and other land uses, and could have a significant effect for climate change mitigation policy in the land-use sector;
  • Regulatory provisions need to clarify the permanence period, liability, measures for handling liability, and remedies for reversal;
  • Approaches should be practical to apply, should result in fungible credits, should be comprehensible to both sellers and buyers, should make financial sense to investors, should incentivize better land use, and ensure environmental integrity.