Environmental Defense Fund (EDF) & Amazon Institute for Environmental Research (IPAM) & Instituto Socioambiental (ISA)

The “compensated reductions” approach by EDF, IPAM and ISA is one of  the earlier proposals to address reducing emissions from deforestation and  is intended as a broad vision for the purpose of stimulating debate. In that  sense, it should be viewed as more of an umbrella category rather than as  a detailed proposal for negotiations. Santilli et al. use a simple concept: any  (non-Annex I) country that reduces national deforestation levels below a  predetermined baseline would be eligible for compensation through a global  carbon market.

Emissions reductions would be relative to a historical average level of  deforestation, although reference levels could be tailored to different  national circumstances; for example, HFLD countries could receive credits  if reference levels were set above their recent level of deforestation. Santilli  et al. also suggest revising reference levels downward over time to achieve  zero deforestation.

Compensation would be allocated ex-post, and would be measured using a  combination of remote sensing, ground surveys and/or forest inventories.  The mechanism would also operate at the national level to avoid within  country leakage, and to assure additionality, and permanence.