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Saving forests? Take a leaf from insurance industry's book
Date:4/18/2012

into the future to account for the carbon being offset."

Additionality - "This a way of describing 'what would have happened anyway'. In other words, if a particular area of forest was never targeted for deforestation, then being paid to maintain it is a false investment because the service was never in any real danger."

Professor Bradshaw and colleagues from James Cook University and the University of Pretoria have suggested using a form of REDD 'insurance policy' (iREDD) to avoid these problems.

iREDD involves the buyer and seller together assessing the risk in a forest conservation project, agreeing on that risk and then purchasing an insurance policy scaled to that risk.

"iREDD can be used to ensure that both the seller and the buyer are protected. In this case, the seller represents those who manage the forests, and the buyer is the company, nation or individual who wishes to buy into the forest for its carbon offset potential.

"In this scheme, everyone wins," Professor Bradshaw says.

"If the sellers fail, then the buyer is compensated and can invest elsewhere. If the sellers do well, they get more money. Most importantly, it increases the probability that atmospheric carbon will be reduced or at the very least, the rate of emissions will be slowed and the forest's associated biodiversity will remain, protecting thousands of species against local extinction."


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Contact: Corey Bradshaw
corey.bradshaw@adelaide.edu.au
61-883-135-842
University of Adelaide
Source:Eurekalert

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