Policy considerations for using forests to mitigate carbon dioxide emissions.

A recent article in Nature, "Soil Fertility Limits Carbon Sequestration by Forest Ecosystems in a CO2-Enriched Atmosphere" by Oren and colleagues, has been widely reported on, and often misinterpreted, by the press. The article dampens enthusiasm for accelerated forest growth due to CO2 fertilization and puts in question the fringe theory that the world"s forests can provide an automatic mitigation feedback. We agree that these results increase our understanding of the global carbon cycle. At the same time, their relevance in the context of the international climate change negotiations is much more complicated than portrayed by newspapers such as the New York Times ("Role of Trees in Curbing Greenhouse Gases is Challenged", May 24, 2001) and the Christian Science Monitor ("Trees No Savior for Global Warming", May 25, 2001).

Capping the cost of compliance with the Kyoto Protocol and recycling revenues into land-use projects.

There is the concern among some countries that compliance costs with commitments under the Kyoto Protocol may be unacceptably high. There is also the concern that technical difficulties with the inclusion of land use, land-use change, and forestry activities in non-Annex I countries might lead to an effective exclusion of such activities from consideration under the Protocol. This paper is proposing a mechanism that addresses both these concerns. In essence, it is suggested that parties should be able to purchase fixed-price offset certificates if they feel they cannot achieve compliance through other means alone, such as by improved energy efficiency, increased use of renewable energy, or use of the flexible mechanisms in the Kyoto Protocol. These offset certificates would act as a price cap for the cost of compliance for any party to the Protocol. Revenues from purchase of the offset certificates would be directed to forest-based activities in non-Annex I countries such as forest protection that may carry multiple benefits including enhancing net carbon sequestration.