Posted for Anjali Nayar

Last week Reuters and The Economist reported on corruption within a yet-to-start programme to save tropical forests and curb climate change. Allegedly, the government of Papua New Guinea has illegally sold the rights to at least 40 projects aimed at averting deforestation, each worth about 1 million tonnes of carbon.

A priority of December’s UN climate change negotiations in Copenhagen is to formulate a global agreement on cutting greenhouse gasses for the period after 2012, when the Kyoto Protocol expires.

One of the pressing issues is whether to make mechanisms for reducing greenhouse gas emissions from deforestation and forest degradation (REDD) eligible for carbon credits on the carbon market. The idea is that in addition to cutting in-country emissions, rich nations can buy credits from the market to meet their agreed targets. In turn, developing countries can earn money simply by keeping their forests standing, rather than cutting them down.

Forest-based credits are already big business in the private sector. Carbon brokers buy up forest projects and re-sell them on a voluntary basis to individuals and companies who want, for example, to offset their airline flights or car emissions.

But a legal framework doesn’t yet exist yet for REDD credits, so no-one is monitoring them. Until this happens, governments that are party to the international climate negotiations, like Papua New Guinea, can’t sell REDD credits.

Many problems with REDD credits have been outlined in the literature, including how they may cause land disputes (see Seeing REDD over forest management). Supporters of REDD projects worry that the new twist of problems could discredit the system before it starts.

REDD-Monitor, a blog run by environmentalist Chris Lang, is following the issue and has posted correspondence outlining Papua New Guinea’s carbon deals. Economist writer Natasha Loder has posted more information on her personal blog.