An exploratory study on forest carbon markets in Asia

Abstract

Based on expert interviews and a structured survey with over 50 experts and industry leaders, this research provides a snapshot of forest carbon market development in Asia and offers future perspectives of challenges and opportunities. This study suggests that the carbon market is in the first generation of rigorous forest carbon standards programs. Those surveyed reflected a guardedly optimistic view that these markets will continue to be one of the solutions to address climate change. Interest in forest carbon projects was highest for “Reducing Emissions from Deforestation and Degradation” (REDD) and for afforestation/reforestation project types. The resonance of biodiversity conservation and community development associated with forest carbon offset projects remains attractive. Compared with other types of carbon credits, those from forest carbon are generally considered rich in co-benefits. The higher social and biodiversity benefits should therefore continue to be favored by companies (e.g. those with corporate social responsibility programs) and individuals in the voluntary market. With respect to quality of carbon credits, the quality brought about through co-benefits from the projects were the highest-rated concern factors, although the project developer experience with carbon projects was also close to the top. Additionality, leakage, permanence, baselines, monitoring and verification are all cornerstones of the quality of forest carbon credits and should have direct impacts on the market price of carbon credits.