Evaluating Carbon Offsets from Forestry and Energy Projects: How Do They Compare?

Abstract

Do forestry projects, as a class, face more difficulties than energy projects in producing greenhouse gas emissions reductions that are real, measurable, additional and consistent with sustainable development? This paper considers the main criteria for qualifying a project that produces emissions reductions: baseline and additionality determination, leakage assessment, measurement of actual emissions or sequestration, and duration or permanence. For all the criteria except permanence, it is difficult to find generic distinctions between LUCF and energy projects, since each of these two categories comprises diverse project types. Instead, the important distinctions among projects have to do with such things as: The level and distribution of direct financial benefits that result from the project The degree to which the project is integrated with a broader physical and economic system The internal homogeneity and geographic dispersion of the project components

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