Forests in the Balance Sheet

This working paper by the World Resources Institute analyzes the implementation of Land Use, Land Use Change and Forestry (LULUCF) provisions of the Kyoto Protocol by developed (Annex I) countries to provide recommendations for an international REDD mechanism for developing countries.

• Current LULUCF rules have led to the significant under-reporting of forest-related greenhouse gas emissions because Annex I countries are only required to report on emissions from deforestation and removals from afforestation and reforestation. The paper suggests that if developing countries only consider deforestation, they will face similar under-reporting issues.
• Existing LULUCF accounting systems lack the accuracy and precision required for the credible inclusion of land use emissions in emission trading. These challenges are expected to persist in mechanisms covering forest degradation, sustainable management, and carbon stock enhancement, which could hinder the effectiveness of carbon market mechanisms.
• There is a need for greater transparency and consistency in reporting land use change and forest activity emissions. Current reporting is insufficient regarding the impacts of emission-reduction policies on human welfare and biodiversity, which undermines the credibility of national actions.
• Greenhouse gas emission inventories are essential for identifying the sources of significant land use emissions and detecting 'leakage' between different land use activities.
• The paper recommends that financing for REDD should not rely solely on carbon markets, as this would compromise accuracy or inclusiveness. Instead, a range of financing means should be used, including a fund for activities that cannot be precisely accounted for.

APA

World Resources Institute (n.d.). Forests in the Balance Sheet. https://www.wri.org/research/forests-balance-sheet

Chicago

World Resources Institute. Forests in the Balance Sheet. n.d. https://www.wri.org/research/forests-balance-sheet.

Wikipedia

{{cite report |author=World Resources Institute |title=Forests in the Balance Sheet |url=https://www.wri.org/research/forests-balance-sheet |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendforests, author = {{World Resources Institute}}, title = {{Forests in the Balance Sheet}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/forests-balance-sheet}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }