Enhanced incentives for mitigation efforts in the Land Use
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Enhanced incentives for mitigation efforts in the Land Use

Land Use Change and Forestry sector in the next global climate change agreement

The Nordic Council of Ministers has set up the Nordic COP 15 Group to help achieve a successful outcome in the climate change negotiations at COP 15 in Copenhagen in December 2009. The Nordic COP 15 Group have identified key elements in the negotiations where efforts are needed to ensure a good outcome, i.e. adaptation to climate change, technolo-gy transfer, legal issues, sinks and deforestation. This report explore ways to adjust the current accounting rules on sinks into rules that would create better incen-tives for actively managing lands, in order to decrease the emission of greenhouse gases to the atmosphere and/ or to remove greenhouse gases from the atmosphere. Different proposals for the treatment of the LULUCF-sector (Land Use, Land Use Change and Forestry sector) are compared and analysed.

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Nordic Council of Ministers

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The most important results of the discussion on different accounting options are summarised in table 2.1. We draw the conclusion that to enhance the incentives to store or sequester more carbon there is in general no difference between a Gross-Net and a Net-Net approach for Forest management. There will nevertheless be large effects on the accountable amount of carbon credits or debits depending on the situation for Forest management in each country. This effect can be balanced using a discount factor. Using a cap, as done in current accounting rules under the Kyoto Protocol, limits the incentives substantially.