Consultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated September 2017 is provided for the ADB project 44141-012.
In facing the challenge of mitigating global climate change, world leaders have acknowledged that no single solution exists, and therefore, a portfolio of carbon dioxide (CO2) reduction technologies and methods will be needed to successfully confront rising emissions. Due to their dependency on fossil fuels, the energy supply and industrial sectors are the greatest contributors to CO2 emissions, accounting for 25.9 percent and 19.4 percent of the total respectively.
Carbon finance will be used to alleviate poverty and develop the renewable energy sector in western China through a new project launched today in Beijing between the United Nations Development Programme (UNDP) and the Chinese government.
Entitled "MDG Carbon: Carbon Finance for Achieving Millennium Development Goals", the US$1.7 million initiative aims to pilot carbon trading in 12 provinces, build capacity and provide policy input for the expansion of carbon market and reduction of greenhouse gas (GHG) emissions in China.
This paper analyzes the issues of the proposed Reducing Emission from Deforestation and Forest Degradation (REDD) programme in developing countries. Issues analyzed include carbon liability, market prices and the social impacts of REDD. The analysis on the liability issue shows that forest used in carbon credit sales is likely to be locked into the market for the long term even on subnormal credit market prices. There is also high risk associated with the price of credits. The net revenues from the sale of the forest carbon credits are likely to be meagre for forest dependent people.