A U.N. deal on forest protection will attract more government funding to help poorer nations, but could fail to prevent a slump in the fledgling market for carbon credits from projects that cut emissions by slowing deforestation.
Almost 200 nations at U.N. talks in Warsaw last month agreed to fund the Reducing Emissions from Deforestation and Forest Degradation (REDD) program and took steps to ensure it will be part of a global pact to tackle climate change after 2020.
REDD proponents hope to halt deforestation responsible for around 15 percent of global greenhouse gas emissions by giving landowners incentives to keep trees, which absorb large amounts of carbon dioxide.
The Warsaw meeting passed a series of resolutions that could pave the way for REDD's eventual use as a source of offset credits for regulated markets and encourage richer nations to donate cash to kick-start REDD initiatives.
Rules for "results-based" financing ...