How Could Carbon Credits for Reducing Deforestation Compete with Returns from Palm Oil: A Proposal for a More Flexible REDD Valuation Tool
In order for carbon credits awarded for reducing emissions from deforestation and degradation of forests (REDD) to be effective, they need to be competitive with alternative land uses. In the case of Southeast Asia, oil palm cultivation is one of the most lucrative possible land uses. Existing mechanisms for awarding certified emission reductions (CERs) might not be adequately flexible to changing commodity prices or to meet the needs of landowners who heavily discount future returns from their land.