Tropical Deforestation Emission Reduction Mechanism (TDERM): A Discussion Paper

Publication - March 11, 2008
Tropical deforestation is a major source of greenhouse gas emissions, threatens biological diversity, and has devastating impacts upon forest dependent peoples. Human induced climate change is projected to cause significant adverse effects on tropical forests where there is a decline in precipitation. As a consequence it is vital that means are found to incentivise and reward reduced deforestation in order to assist in the task of preventing dangerous climate change and thus achieve the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC).

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Executive summary: A proposal for a hybrid market linked Tropical Deforestation Emission Reduction Mechanism (TDERM) under the UNFCCC and its Kyoto Protocol is outlined that can effectively incentivise and reward efforts to simultaneously meet the twin goals of:

  • Reducing emissions from deforestation in tropical developing countries.
  • Protect biological diversity and ecosystem services intrinsic to tropical forests.
The mechanism proposed here would raise sufficient funds to bring about substantial reductions in deforestation and related emissions, which would be additional to the deep Annex I Party emissions reduction targets required in future commitment periods of the Kyoto Protocol which are necessary, but not sufficient, to limit warming to below 2oC above pre-industrial levels. The TDERM proposed here avoids many of the difficulties of proposals to reward and incentivise deforestation reductions that are directly linked to the market.

Num. pages: 52