PDF

URL

BibTeX

DOI

Abstract. In the case of avoided deforestation initiatives, a forest carbon credit is a symbolic representation of forest carbon that has been conserved in a landscape via a successful intervention. As such, the credit represents a quantification of the climate impact of the conservation activities (the carbon benefit) and to be considered high-integrity that quantification must be accurate. However, the way the intervention is implemented also contributes to the integrity of the credit it generates - for example, the extent to which the initiative complies with relevant law and uses appropriate incentive structures. From a legal perspective, a forest carbon credit is a specific type of property and the issue of integrity can be unpacked by looking at the consequences of this: existing tenure arrangements will influence the implementation of conservation work and inform the proper allocation of carbon revenue between participants; how a carbon credit is recognised in relation to existing taxation and climate regimes will influence a government's ability to tax carbon revenue and use credits to meet climate commitments; and, clarity regarding the ownership of the title to the carbon credit is at the heart of a carbon transaction (ie. the flow of carbon finance). As such, a legal perspective helps to disaggregate key issues that must be addressed in the design and implementation of avoided deforestation initiatives and the regimes that seek to regulate them. This paper identifies the different proprietary interests linked to forest carbon property (and concomitant obligations), and discusses how addressing the issues linked to them in an appropriate manner supports market integrity.

Authors. Sophie Chapman, Eleanor Toye Scott, Thomas Swinfield, Robin Daniels and Anil Madhavapeddy

See Also. This publication was part of the Trusted Carbon Credits project.

News Updates

Nov 2024. «» Paper on legal aspects of forest carbon credits in Carbon & Climate Law review.

Sep 2024. «» Discuss the NbS risks paper.

Aug 2024. «» Discussion on the nature-based credits article.

Mar 2023. «» Discussion with Mantle Labs about carbon credits.

Nov 2022. «» Wednesday seminar on financing forests using carbon credits.

May 2022. «» Quoted in Vox article on carbon credits.

Sep 2021. «» Started maintaining (sporadically) a note on a forest preservation and restoration bibliography.