Indufor recently carried out a study for the Nordic Council of Ministers which discusses the role of forests in the Nordic region in climate change mitigation. It also discusses the use of wood for products and energy and the feasibility of a scheme for trading forest carbon sequestration in the region.
In the Nordic countries, the total growing and biomass stocks have been increasing as a result of practicing sustainable forest management and investments in forestry for the last six to seven decades. The forest carbon sink, following the positive net annual increment in biomass, has increased in past decades in the Nordic region. The forests have sequestrated a large amount of carbon each year. Over the coming years, the forest sink in the Nordic region is expected to further increase in size.
There are a number of emissions trading schemes or systems around the world currently under operation or at an advanced stage of development. These are discussed in the report. Given the number of compliance and voluntary market mechanisms that have developed and are under development, the trend is clear – market mechanisms that include forestry are increasing in volume, size and liquidity, and the range of instruments is diverse.