1
1. Introduction
Reducing emissions from deforestation and degradation (REDD) has movedfirmly onto the agenda as the parties to the United Nations FrameworkConvention on Climate Change (UNFCCC) approach the climate changenegotiations at the Conference of the Parties (COP) 15 at Copenhagen inDecember 2009. REDD is an option that could rapidly and cost-effectivelyreduce GHG emissions and could also protect biodiversity and benefit local andindigenous peoples. Furthermore, the engagement of the United States andothers has heightened interest in, and debate about, the use of emissions offsetsto achieve greenhouse gas (GHG) emissions reduction goals.In this paper we investigate the impact of implementing REDD in the context ofa global effort to combat climate change. Specifically, we explore the effects ofincorporating REDD in international carbon markets. We expand on previousmodelling efforts by simulating carbon market interactions under expandedAnnex I commitments which are aligned with the goal of avoiding a greaterthan 2.0-2.4°C rise in global temperatures.Both policy makers and the general reader may find the implications forcompliance costs, Annex I abatement and non-REDD offsets of particularinterest. Section 1 introduces the context of our study. Section 2 follows with adescription of other relevant modelling efforts and our chosen methodology.Section 3 presents high-level results while Section 4 opens discussion on somepolicy implications of our numerical findings. Section 5 concludes. Theappendix contains detailed numerical results.
Context
The human, economic, and environmental costs of even a 2°C rise in meanglobal temperatures have been assessed as substantial. The Stern reviewestimates the economic costs of climate change could exceed 20% of Global GDP(Stern 2006, 2008).The presence of carbon dioxide (CO
2
) and other GHGs in the Earth’satmosphere serve to regulate the Earth’s energy balance. Increases in the levelsof CO
2
and other GHGs will increase the amount of solar radiation which willremain trapped in the Earth’s energy system and lead to increased globaltemperatures.
Leave a Comment