The Clean Development Mechanism (CDM) is a framework established by the Kyoto Protocol that aims to connect the carbon market with sustainable development goals in developing countries. As a result, carbon that is sequestered has become a globally traded commodity with the potential to provide significant economic benefits to land managers. Unlike traditional development models, which rely on deferred and diffuse benefit streams, the new carbon market model offers an opportunity to directly link land management and natural resource conservation with specific and immediate market incentives. Analysis has shown that carbon markets can serve as a catalyst for increased tree planting and improved forest management, thereby realizing the multiple benefits of forestry and agroforestry systems. In recent years, participation in carbon credit trading markets has increased significantly. The Chicago Climate Exchange (CCX) now boasts over six million trades per month. According to a recent summary of the State and Trends of the Carbon Market 2006 prepared for the World Banks BioCarbon Fund, corporate participation in the carbon market has rapidly increased. This book examines the concept of CDM and other forestry-based carbon finance mechanisms introduced by the United Nations Framework Convention on Climate Change (UNFCCC) and their impact on carbon markets. Additionally, it provides a brief analysis of the growth of the carbon market in India, including its current status and potential for future growth. The book also includes a detailed account of Afforestation and Reforestation CDM Projects, including the A/R Project Design Document by the UNFCCC, in a simplified yet comprehensive manner for better understanding of the procedure as a reference guide.
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