Carbon Credits & Trading

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Carbon Sequestration & Sinks

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The current consensus of the scientific community is that the Earth is heating up partly due to the "Enhanced Greenhouse Effect". This is caused by emissions of Carbon dioxide and other gases from human activities, such as burning fossil fuels. One of the proposed solutions to the excess of Carbon dioxide in the atmosphere is to plant more trees, which will absorb Carbon dioxide in their growth period and store Carbon in their wood.

In 1997 nations met to form the Kyoto Protocol , an agreement to reduce Carbon emissions. Although the Kyoto Protocol has not been ratified, there is already speculative Carbon Credits trading. Carbon Credits may be paid for trees planted on land cleared prior to 1990, however, growers may have to repay the carbon credits once their trees are harvested. At present, Carbon Credits are not valuable enough to be the main driver for planting trees, but they may be the icing on the cake.

In Queensland, recent legislation has allowed for three-way ownership of a timber plantation, such that there may be separate ownership of the land and the Carbon Credits of a plantation. The Australian Greenhouse Office has information on how to calculate Carbon sequestration in plantations and how carbon trading may proceed.

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