how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits-c774d18c9e2db9c5.pdf

This report by the World Resources Institute argues that current carbon market crediting systems systematically undervalue tropical forests by focusing exclusively on carbon sequestration and ignoring critical non-carbon biophysical effects that contribute to global climate stability.

• Tropical forests influence the climate through four primary non-carbon biophysical processes: albedo (solar energy reflection), evapotranspiration (cooling via moisture release), surface roughness (wind turbulence that lifts heat and moisture), and the release of aerosols (particles that affect cloud color and atmospheric concentrations).
• The failure to account for biophysical effects leads to a significant underestimation of the impact of tropical deforestation on global warming, which is estimated to contribute 50 percent more to warming than carbon-only calculations suggest.
• Deforestation has severe regional and local climate consequences: it can disrupt 'precipitation sheds' and decrease rainfall across national borders—such as the Brazilian Amazon's impact on Bolivia, Uruguay, Paraguay, and Argentina—and can increase local peak temperatures by more than 7.6°C.
• Current carbon markets may exacerbate global inequities by applying overly conservative standards to tropical forest credits while overestimating the value of forest credits at higher latitudes, where albedo effects actually cause warming.
• The report identifies a concept of 'positive biophysical leakage,' where protecting tropical forests creates cooler, moister environments that increase the resilience of adjacent unprotected areas, reducing the risk of wildfires, drought, and CO2 emissions.
• To better value tropical forests, the authors suggest that biophysical effects be treated as additional attributes that command premium prices, that 'positive leakage' be accounted for, and that long-term efforts be made to quantify these benefits as CO2 equivalents.

APA

World Resources Institute (n.d.). how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits-c774d18c9e2db9c5.pdf. https://files.wri.org/d8/s3fs-public/2023-05/how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits.pdf

Chicago

World Resources Institute. how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits-c774d18c9e2db9c5.pdf. n.d. https://files.wri.org/d8/s3fs-public/2023-05/how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits.pdf.

Wikipedia

{{cite report |author=World Resources Institute |title=how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits-c774d18c9e2db9c5.pdf |url=https://files.wri.org/d8/s3fs-public/2023-05/how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendhowcarbonmarketssystematicallyundervaluetropicalforestsclimatebenefitsc774d18c9e2db9c5pdf, author = {{World Resources Institute}}, title = {{how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits-c774d18c9e2db9c5.pdf}}, institution = {World Resources Institute}, url = {https://files.wri.org/d8/s3fs-public/2023-05/how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }