Just two countries—Indonesia and Brazil—account for about ten per cent of the greenhouse gases released into the atmosphere. Neither possesses the type of heavy industry that can be found in the West, or for that matter in Russia or India. Still, only the United States and China are responsible for greater levels of emissions. That is because tropical forests in Indonesia and Brazil are disappearing with incredible speed. And when forests disappear, the earth loses one of its two essential carbon sponges (the other is the ocean).
Paying farmers or governments to prevent deforestation in countries like Indonesia would be one of the best investments the world could ever make. From both a political and an economic perspective, it would be easier and cheaper to reduce the rate of deforestation than to cut back significantly on air travel. It would also have a far greater impact on climate change and on social welfare in the developing world. Possessing rights to carbon would grant new power to farmers who, for the first time, would be paid to preserve their forests rather than destroy them.
The easiest way to finance such a plan would be to use carbon-trading allowances. Anything that prevents carbon dioxide from entering the atmosphere would have value that could be quantified and traded. Since undisturbed farmland has the same effect as not emitting carbon dioxide at all, people could create allowances by leaving their forests untouched or by planting new trees.
Source: The New Yorker, 25/02/08
