combined incentives

Definition

The proposal by CSERGE offers a compensation mechanism with combined incentives to reduce emissions in developing countries. Strassburg et al. highlight two issues with existing mechanisms. Firstly, project- or nationallevel mechanisms have been unsuccessful in the past due to national or international leakage respectively. Secondly, additional incentives should be provided to countries that have been conserving their forests in the recent past. To address these issues, the “combined incentives” mechanism proposes that each country receives two kinds of incentives simultaneously. The first is based on the ‘‘compensated reduction’’ concept and is an incentive to reduce its emissions in comparison with its historical emissions. The second follows the expected emissions concept that connects the incentive to the ecosystems carbon stock while maintaining global additionality. It is an incentive to emit less than it would emit if it followed an average behaviour given by the global baseline emission rate. These “combined incentives” allow funds to be allocated to both previously high emitters and countries with currently low deforestation rates. The proportion of funds going to each of these activities is adjustable and could be decided by the COP. To avoid national leakage, the core mechanism would operate at the national level and, since incentives are allocated per avoided tonne of CO2, the mechanism can accommodate any source of funding. (The Little REDD Book, 2008)

The proposal by CSERGE offers a compensation mechanism with combined incentives to reduce emissions in developing countries. Strassburg et al. highlight two issues with existing mechanisms. Firstly, project- or nationallevel mechanisms have been unsuccessful in the past due to national or international leakage respectively. Secondly, additional incentives should be provided to countries that have been conserving their forests in the recent past. To address these issues, the ?combined incentives? mechanism proposes that each country receives two kinds of incentives simultaneously. The ?rst is based on the ??compensated reduction?? concept and is an incentive to reduce its emissions in comparison with its historical emissions. The second follows the expected emissions concept that connects the incentive to the ecosystems carbon stock while maintaining global additionality. It is an incentive to emit less than it would emit if it followed an average behaviour given by the global baseline emission rate. These ?combined incentives? allow funds to be allocated to both previously high emitters and countries with currently low deforestation rates. The proportion of funds going to each of these activities is adjustable and could be decided by the COP. To avoid national leakage, the core mechanism would operate at the national level and, since incentives are allocated per avoided tonne of CO2, the mechanism can accommodate any source of funding. (The Little REDD Book, 2008)

Broader terms

REDD approaches