Carbon markets could rupture from forest credits, claims Greenpeace
At the premier meeting of UN climate talks in Bonn on Monday, Greenpeace advisors warned world leaders of a potential collapse in the world's carbon markets if an inclusion of forest protection credits amongst international emissions trading occurred.
The inclusion of forest offset credits would diminish the cost of carbon units by up to 75% by 2020 from €16.05 per tonne of carbon to €3.9 if current reduction targets are adhered to, with devaluation by 60% a possibility even with the number of credits limited, according to a new report launched by the concerned NGO.
Greenpeace state that a strong carbon price is crucial to the stimulation of investments in clean and renewable technologies.
A lower price could postpone any necessary infrastructural changes that are required in keeping global warming below 2°C.
This would be particularly true in developing countries, which could initially benefit from selling credits to industrialised nations looking for a cheaper way of paying for their emissions.
However, they would suffer in the long term, as failed efforts to mitigate climate change would ultimately destroy the forests.
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