Update on markets for forestry offsets

This guide is an update of the book 'Guidebook to Markets and Commercialization of CDM forestry projects'. The document provides information on the development of CMD methodologies, projects registered and markets since the publication of the first version. In addition it introduces the emerging non-Kyoto markets, it presents a classification of the existing developments, it describes each market including the buyer's preferences and it discusses the use of standards and quality criteria and transaction costs. We focus on markets for offsets from developing countries, rather than domestic offsets in developed countries. Section 1 is an introduction to the topic and an overview of the most recent developments. Sections 2 and 3 look at recent experiences and market developments for CDM reforestation projects. These sections are meant to be an update of the above mentioned guidebook and thus refrain from an exhaustive description. Section 4 assesses non-Kyoto markets for carbon offsets from forestry projects. It includes a description of the various market schemes and types of buyers. The section attempts to provide the project developer with useful information for developing a project following buyer' requirements. Finally, section 5 puts the assessment of opportunities for forestry in the broader context of the larger carbon markets. The report then concludes with a comparison of advantages and disadvantages of the CDM and non-Kyoto schemes from the project developer's point of view