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Carbon Emissions: Developing Countries

Volume 479: debated on Monday 1 September 2008

To ask the Secretary of State for Environment, Food and Rural Affairs if he will make a statement on his policy on amending the Linking Directive of the European Emissions Trading Scheme to enable the inclusion, under the scheme, of carbon credits from forest projects in the developing world. (219540)

[holding answer 17 July 2008]: We are currently consulting on changes to the European Union emissions trading scheme (EU ETS) in light of the European Commission's proposed climate and energy package. Credits from reforestation and afforestation projects require a robust monitoring system, an understanding of the potential impact on the EU ETS allowance price, and assurance that non-permanent credits would not damage the environmental integrity of the scheme, before they can be included in the EU ETS.

It is not currently possible to credit projects that seek to avoid deforestation as this is not provided for within the scope of the Kyoto protocol. However, we recognise the importance of addressing this issue and we are working through the international climate negotiations for an agreement on reducing emissions from deforestation for post-2012. I welcome the provision contained in the European Commission's proposal for new crediting mechanisms under an international agreement which would give the flexibility to include credits from avoided deforestation and other land use activities in future phases of the EU ETS.