Please use this identifier to cite or link to this item: https://hdl.handle.net/2440/74002
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Type: Journal article
Title: iREDD hedges against avoided deforestation's unholy trinity of leakage, permanence and additionality
Author: van Oosterzee, P.
Blignaut, J.
Bradshaw, C.
Citation: Conservation Letters, 2012; 5(4):266-273
Publisher: Wiley-Blackwell Publishing
Issue Date: 2012
ISSN: 1755-263X
1755-263X
Statement of
Responsibility: 
Penny van Oosterzee; James Blignaut; Corey J. A. Bradshaw
Abstract: Workable financial mechanisms are essential to abate greenhouse gas emissions. Deforestation, which contributes a large proportion of total global emissions, must be avoided as an effective emissions-reduction tactic, and to alleviate biodiversity loss and poverty. However, incentives to reduce emissions from deforestation and forest degradation (REDD) have had mixed and suboptimal success because of opportunity costs and administrative and technical issues, in particular, leakage, permanence, and additionality. We show that these latter concepts can be ambiguous, potentially contrived and in some cases, generate perverse outcomes. Encumbering avoided-deforestation projects with these administrative shackles risks massive increases in global deforestation and a concomitant loss of biodiversity, ecosystem services and emissions-reduction opportunities. We offer a solution built on a proven insurance-based hedging principle, a concept we call iREDD, that could indirectly address specific technical and administrative challenges, whether real or contrived. Project-specific iREDD insurance policies and premiums would be negotiated upfront using a simple assessment of risk based on governance quality, the integrity of management plans, liquidity, monitoring and evaluation frameworks, and political acceptability. iREDD acts as both an incentive for prudent forest management given the seller's potential financial windfall if forests are diligently managed, and guarantees not to disenfranchise the buyer.
Keywords: Emissions
degradation
economics
forest
habitat loss
insurance
payment
REDD
Rights: ©2012 Wiley Periodicals, Inc.
DOI: 10.1111/j.1755-263X.2012.00237.x
Appears in Collections:Aurora harvest
Earth and Environmental Sciences publications
Environment Institute Leaders publications

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