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main source of income for the UNFCCC Adaptation Fund, which
was established to finance adaptation projects and programmes in
developing country Parties to the Kyoto Protocol that are particularly
vulnerable to the adverse effects of climate change. The Adaptation
Fund is financed by a 2 per cent levy on CERs issued by the CDM.
However, the number of registered CDM projects and requests for
new registrations in India are minuscule. Not only this, the share of
forestry related projects in the total CDM projects for India is almost
negligible (UNFCCC, undated; Earthwatch, undated).
Financial Mechanism of REDD+
The UN financial mechanism of Reducing Emissions from Deforestation
and Degradation (REDD+) incentivizes avoided deforestation and
sustainable management of forests with the view to reduce GHG
emissions. REDD+ aims at compensating forest owners in developing
countries for conserving forests by assigning value to the forest carbon
stock, one of the ecosystem services provided by the forests.
India continues to play an important role in REDD+ negotiations
and has been guiding current international negotiations relating
to REDD+. India’s position on REDD+ underscores the need for
reducing emissions through sustainable management of forests, and
enhancement of forest carbon stocks, in addition to reducing emissions
from deforestation and forest degradation (TERI 2009). India also
released its draft National Policy on REDD+ in 2014 to provide
a roadmap for effective implementation of REDD+ projects and
programmes across the country and create financial incentives for the
local communities who are at the forefront of forest conservation efforts
(MOEFCC 2014). Even though the number of REDD+ pilot initiatives
is rapidly rising in India, comprehensive financial arrangements for
full-scale implementation of REDD+ projects are yet to be made (Lang
2011; Carbon Market Watch 2013).
Ecosystem services funding mechanisms
Payments for ecosystem services or PES mechanism is a broad term used
for a variety of financial arrangements made between the beneficiaries
of ecosystem services and providers of those services. This mechanism
for the forestry sector is particularly considered as a useful instrument
to preserve forest ecosystems (UNEP 2011). It has the potential to
ensure effective provisioning of forest ecosystem services such as
carbon sequestration, nutrient storage, and recreational services.
304 Low Carbon Development in China and India
was established to finance adaptation projects and programmes in
developing country Parties to the Kyoto Protocol that are particularly
vulnerable to the adverse effects of climate change. The Adaptation
Fund is financed by a 2 per cent levy on CERs issued by the CDM.
However, the number of registered CDM projects and requests for
new registrations in India are minuscule. Not only this, the share of
forestry related projects in the total CDM projects for India is almost
negligible (UNFCCC, undated; Earthwatch, undated).
Financial Mechanism of REDD+
The UN financial mechanism of Reducing Emissions from Deforestation
and Degradation (REDD+) incentivizes avoided deforestation and
sustainable management of forests with the view to reduce GHG
emissions. REDD+ aims at compensating forest owners in developing
countries for conserving forests by assigning value to the forest carbon
stock, one of the ecosystem services provided by the forests.
India continues to play an important role in REDD+ negotiations
and has been guiding current international negotiations relating
to REDD+. India’s position on REDD+ underscores the need for
reducing emissions through sustainable management of forests, and
enhancement of forest carbon stocks, in addition to reducing emissions
from deforestation and forest degradation (TERI 2009). India also
released its draft National Policy on REDD+ in 2014 to provide
a roadmap for effective implementation of REDD+ projects and
programmes across the country and create financial incentives for the
local communities who are at the forefront of forest conservation efforts
(MOEFCC 2014). Even though the number of REDD+ pilot initiatives
is rapidly rising in India, comprehensive financial arrangements for
full-scale implementation of REDD+ projects are yet to be made (Lang
2011; Carbon Market Watch 2013).
Ecosystem services funding mechanisms
Payments for ecosystem services or PES mechanism is a broad term used
for a variety of financial arrangements made between the beneficiaries
of ecosystem services and providers of those services. This mechanism
for the forestry sector is particularly considered as a useful instrument
to preserve forest ecosystems (UNEP 2011). It has the potential to
ensure effective provisioning of forest ecosystem services such as
carbon sequestration, nutrient storage, and recreational services.
304 Low Carbon Development in China and India
