incentive accounting

Definition

The JRC propose a new accounting mechanism for REDD that awards both reducing deforestation in countries with high forest conversion rates, and maintaining low forest conversion rates in the other countries. Mollicone et al. point out that if a hypothetical remuneration mechanism is based solely on national baselines, those countries with low forest conversion rates will see little or no benefit in making further reductions. Baselines under the mechanism are established using an average over an historical reference period between two negotiable dates. To avoid intranational leakage Mollicone et al. state that any baseline should be at the country level. The generation of credits is determined through a country’s historical conversion rate relative to the global average. Mollicone et al. propose that countries with emissions less than half of a global average baseline are rewarded for maintaining their carbon stock and countries with emissions higher than half the global average are rewarded for reducing emissions from forest conversion. (The Little REDD Book, 2008)

The JRC propose a new accounting mechanism for REDD that awards both reducing deforestation in countries with high forest conversion rates, and maintaining low forest conversion rates in the other countries. Mollicone et al. point out that if a hypothetical remuneration mechanism is based solely on national baselines, those countries with low forest conversion rates will see little or no benefit in making further reductions. Baselines under the mechanism are established using an average over an historical reference period between two negotiable dates. To avoid intranational leakage Mollicone et al. state that any baseline should be at the country level. The generation of credits is determined through a country?s historical conversion rate relative to the global average. Mollicone et al. propose that countries with emissions less than half of a global average baseline are rewarded for maintaining their carbon stock and countries with emissions higher than half the global average are rewarded for reducing emissions from forest conversion. (The Little REDD Book, 2008)

Broader terms

REDD approaches