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The nature of the right or interest created by a market for forest carbon
Courtesy of Lexxion Verlagsgesellschaft mbH
Increasingly, the global community is recognizing the need to engage the forest sector as a critical tool to mitigate global warming. A significant opportunity for this sector is the emerging global greenhouse gas emissions trading market. Yet, for forests to be included effectively in emissions trading markets, the nature of the legal rights in forestbased greenhouse gas reductions should be clarified to secure reductions and provide buyers and sellers of forest-based reductions greater legal certainty in this rapidly emerging area. This note explores the rights that may be established by a greenhouse gas market for forest-based reductions in the regulatory and voluntary markets. It also suggests the need to establish a complementary and distinct right in real property related to forest carbon storage.
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