Case Studies

Mitigation and Adaptation

UN-REDD: Reducing Emissions from Deforestation and forest Degradation in LIC’s

Approximately 17 percent of carbon emissions are due to deforestation and forest degradation, more than the entire global transportation sector and only second to the energy sector.

Reducing emissions from deforestation and forest degradation (REDD+) is the mitigation strategy offering incentives towards developing countries to reduce emissions from forested lands and to invest more into eco-friendly, low-carbon methods. Based on results of the actions taken by the developing countries, the countries may receive carbon offsets, which are credits for reductions in greenhouse gases that one party has achieved which can be purchased and used to offset or compensate the emissions of the purchasing party. This strategy is able to reduce forest emissions and enhance carbon stocks in forests, while contributing to national sustainable development in countries.

Programme Reach

The UN-REDD programme assists over 60 countries spanning Africa, Asia-Pacific and Latin America-Caribbean to develop the capacities needed to meet the UNFCCC REDD+ requirements, so that they can qualify to receive results-based payments under the program. The programme includes:

Case: Ecuador
Programme Advantages and Disadvantages

Advantages

  • Mitigation of climate change and protection of biodiversity and watersheds
  • REDD+ is dependent upon local communities and provides sustainable livelihoods for the people who are forest dependent
  • Past communities that were neglected may gain a voice in the political process in regards to REDD+

Disadvantages

  • There is no international definition of sustainable forest management
  • Diverse legal systems govern the world’s forests and in many countries ownership is not always clear
  • Corruption and carbon fraud – Only Brazil and Costa Rica have governance institutions out of 10 of the largest tropical forest countries with the capacity to set up REDD+
  • It is not clear how REDD+ should be financed and is usually more expensive than estimates predict
  • Proper management of REDD+ is difficult and needs to be monitored carefully.

Carbon Taxing/Pricing

Policy Overview
Case: Canada

Canada’s carbon tax plan was put in place in 2018, with a national carbon price - a minimum of $10 per metric ton of CO2 initially, which will increase annually by $10/tonne to reach $50 in 2022. This highlights an issue with the tax, as it must continue to rise in order to put enough pressure on consumers and businesses to continue lowering carbon emissions. However, in this case, a combination with increasing carbon tax to reduce GHG emissions and a decrease in provincial sales tax from 7% to 6% and annual rebates allows for the same effect while also protecting low-income households.

Case: United States

It is important to implement the tax slowly as not to cause negative consequences for the economy, and equally, as to reduce competitiveness between different states or provinces within the country. This is particularly troublesome in the USA, since it is composed of states with varying levels of potential in relation to carbon taxing. It would be hard for any one state to push its carbon tax too high as to not result in concerns over competitive advantage against, for example, states more reliant on fossil fuels. Main issues include certain states’ ideologies, such as those in Arkansas who dislike the notion of increased electricity prices, or legal affairs, such as in Oregon, where carbon taxing was rejected in favor of developing the state’s renewable energy sources; these are difficult boundaries to cross, especially considering Trump’s view that it would be unnecessary.

Advantages and Disadvantages

Advantages

  • Mitigation of climate change
  • If well-planned, the economy will remain unaffected
  • Increased revenue that could also be spent on reducing pollution levels
  • Easy way to incentivize businesses to reduce GHG emissions and promote renewable energy

Disadvantages

  • Too high a tax can lead to backlash and discouraged businesses
  • Encourages tax fraud and evasion
  • Easy for larger corporations to shift production to countries without a carbon tax
  • Administration costs are present when collecting taxes