Carbon sinks are a tool for combating climate change. However, this approach has been criticised for encouraging inappropriate forestry plantations. Some experts argue that it also fails to address the real causes of climate change. Despite these limitations, carbon sinks can work and some changes to the approach could make them a pro-poor policy tool.

Tree planting projects can both conserve carbon and reduce atmospheric carbon dioxide. Planting is often funded by organisations who want to gain 'carbon credits' that can be offset against activities contributing to global warming, through the Clean Development Mechanism (CDM) of the Kyoto Protocol. Research from the Institute of Development Studies, UK, and the Stockholm Environment Institute, Sweden, analyses the potential impacts of carbon sinks on rural livelihoods.

Tree planting schemes can have some social benefits, such as providing jobs for rural communities. However, the kind of large-scale tree planting encouraged by carbon-sink projects often do more harm than good. Many environmental non-governmental organisations argue that sinks can encourage environmentally destructive plantation monoculture, resulting in 'green deserts', such as the Brazilian Plantar project. Furthermore, critics argue that carbon sinks divert attention from the real causes of climate change. Companies plant trees but continue to pollute the atmosphere. More effort should be put into changing patterns of energy use and reducing greenhouse gas emissions. 

Despite these arguments, carbon sinks should not be totally dismissed. If international rules and processes are improved, they can have improved social and environmental impacts. It is important increase understanding of the different uses of forestry resources in different places.

The research makes the following observations:

• Well-designed projects can bring real benefits to rural people, such as supporting community plantations that plant trees on farms and pastures.
• CDM rules need reforming to promote appropriate small-scale projects.
• The high transaction costs of getting CDM approval are a major obstacle. Certain types of potentially useful projects and activities are ineligible for funding.

To avoid funding activities that would have happened anyway, CDM rules specify the need for projects to prove 'additionality'. This means showing that more carbon will be 'sequestered' (or stored) because of the project. This can be difficult to demonstrate, however. Furthermore, CDM excludes work-only projects, requiring complementary policy measures as well. These can be harder to introduce.

The current carbon sinks system needs to change. Revising CDM rules will help to avoid inappropriate projects. 'Carbon finance' can promote rural livelihoods but need suitable policies and regulations that really reduce poverty. The research makes the following policy recommendations:

• CDM mechanisms should be reformed but not abandoned. There should be a fast-track system for small projects.
• Key areas for carbon sinks need identifying. Indian wastelands are an example of a vast area where a large amount of carbon could be stored.
• Different community-level efforts could be encouraged to link up.
• CDM is the main source of funding for carbon sinks, but other mechanisms exist, such as World Bank carbon funds. These sources of finance are at present too limited.
• Market-based mechanisms rarely work in the interests of the poor, unless there is good regulation that protects local rights.
• There should be support for beneficial activities already happening, such as projects protecting rural land use rights, even if they do not definitely demonstrate ‘additionality’.

Source(s):
'Carbonising Forest Landscapes? Linking Climate Change Mitigation to Rural Livelihoods', IDS Bulletin, 35, 3, by G. Leach and M. Leach, 2004

id21 Research Highlight: 27 April 2005

Further Information:
Melissa Leach
Institute of Development Studies
University of Sussex
Brighton
BN1 9RE
UK

Tel: +44 (0)1273 606261
Contact the contributor: m.leach@ids.ac.uk

Institute of Development Studies, UK

Other related links:
'Securing development in the face of climate change' - id21 insights

'Environmental services, tropical forests and local livelihoods'

'Carbon trading and forests – opportunities for local development '

'Adapting to climate change: developing countries and the global response'

'Using wood to combat climate change'

'The clean development mechanism and tropical forestry' from ELDIS