Special Report No. 05-05: Developing a Conceptual Methodology for Successful Clean Development Mechanism (CDM) Industrial Afforestation/Reforestation Carbon Sequestration Projects

<p align="justify">The Clean Development Mechanism (CDM) is one of three Kyoto Protocol “flexibility mechanisms” designed to assist participating Parties comply with their emission reduction commitments while advancing sustainable development of host countries. The eligibility of land-use, land-use change and forestry project activities under the CDM provides an opportunity for industries to invest in afforestation or reforestation (A/R) projects that sequester carbon and meet requirements of providing economic development and conservation benefits for the host country.<br /><br />Although A/R projects are an eligible component of the CDM, none have yet been approved by the CDM Executive Board. The objectives of this report are to (a) review A/R projects proposed to the CDM Executive Board in the past, (b) evaluate the reasons why proposed projects have been rejected by the Board, and (c) identify criteria for implementing successful, sustainably managed industrial forestry projects. These criteria include project design, host country selection, approaches for overcoming additionality and leakage constraints, and the role of conservation and economic objectives. <br /><br />This report, prepared by Savcor Indufor Oy of Finland, reviews CDM A/R project criteria and summarizes each of 13 proposed CDM A/R projects. Criteria responsible for the rejection of each project by the CDM Executive Board were evaluated. The primary reason for project rejection was found to be inadequate documentation and/or quantification of baseline scenarios and additionality, meaning that project proposers did not provide sufficient evidence that the reductions accomplished by the project were additional to what would be done in the absence of the project.</p>