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Keywords:

  • REDD+;
  • post-2012 climate regime;
  • scenarios;
  • Indonesia

Abstract

The REDD+ (Reducing Emissions from Deforestation and Forest Degradation) partnership works to promote the reduction of greenhouse gas (GHG) emissions by protecting forests in developing countries through positive incentives. It is regarded as an essential component of the post-2012 climate regime to stabilize GHG emissions and engage developing countries in worldwide mitigation endeavours. This study focuses on the gap between agricultural revenue and REDD+ compensation through the construction of several scenarios that explore the impacts of possible carbon price ranges.Three scenarios that reflect different potential policies are examined: (1) current carbon trading; (2) carbon trading with all forestry activities; and (3) carbon trading with all countries participating gradually over the coming decades. Data for developing the scenarios were obtained through a case study in central Kalimantan, Indonesia, by interrogating the potential for revenue by expanding agricultural land. The results indicate that REDD+ payments could not effectively compensate land users for their opportunity cost of deforestation, making it difficult for the governments to ensure that REDD+ money “reaches the ground” in terms of balancing the agricultural revenue of land users.