Australia

Australia’s proposal for a forest carbon market mechanism includes reducing emissions from deforestation and degradation as well as increasing removals through afforestation and reforestation with a view towards broader inclusion of the land sector in the future. The mechanism will aim to avoid perverse outcomes, including for biodiversity and benefits will be maximized by the active inclusions of local and Indigenous communities in host Party activities. The forest carbon market mechanism is a national level approach, which can support sub-national implementation.

Reductions in emissions and increases in removals relative to an agreed national forest emissions level will generate tradable forest carbon credits. The emission level will be set using a holistic approach that will be a conservative projection of future anthropogenic net emissions derived using the above information. Market confidence measures could include participation in an international “confidence buffer”; an international pool of credits that can be used as a last resort to make up forest carbon credits when a major anthropogenic event results in non-permanence. Significant readiness and capacity building will also be required to enable developing country Parties to participate in a forest carbon market mechanism. This will include assistance for carbon monitoring and accounting, policy development and institutional capacity building. Support for this readiness and capacity building will be provided through non-market arrangements in the short-term.