Tuesday, August 14, 2007

Unintended consequences

Reuters reports:

The current carbon market actually encourages cutting down some of the world's biggest forests, which would unleash tonnes of climate-warming carbon into the atmosphere, a new study reported on Monday.
"The countries that haven't really been the target of deforestation have nothing to sell because they haven't deforested anything," said Gustavo Fonseca, one of the study's authors.

"So that creates a perverse incentive for them to actually start deforesting, so that in the future, they might be allowed to actually cap-and-trade, as they call it: you put a cap on your deforestation and you trade that piece that hasn't been deforested."

Sorry - credit omitted in first post. Via Benny Peiser.

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