ETS - Emissions Trading Schemes (EU, NZ, ...) and Forest Carbon Credits

LONDON, May 13 (Reuters) - Forests have a growing value as a result of climate policies, but the complexity of carbon markets coupled with the effects of the financial crisis are deterring investment, investors and analysts said in London on Thursday.

For thousands of years, we have been planting and growing trees without difficulty. It’s simple, and forest carbon business strategy can be, too. In fact, it’s core to what I’m trying to teach the MBA/MS students in my course at the Erb Institute this semester: If the world’s best available technology for removing carbon dioxide from the atmosphere is employing the natural photosynthetic capacity of natural forest management, we can too.

But in many ways, we are all unable to see the forests for the trees.

How does carbon trading work? Does it really help tackle climate change? Isn’t it all just smoke and mirrors? Is the Kyoto Protocol doing any good?

These and similar questions are increasingly being asked as the evidence for global warming mounts, scientists tell us more of dramatic climatic impacts we can expect, and pressure for measures to rein in greenhouse gas emissions heightens. At the same time, there are warnings from industry over the costs in jobs, profits and consumer prices that will stem from mandatory carbon trading regulation.

Expectations that forest-based carbon credits will be eligible for use in future compliance regimes could boost the market, according to Ecosystem Marketplace.