Abstract:

In order to study the tendencies of the markets and the sellers strategies for forestry CDM, this paper reviews status of the markets for forestry CDM such as transaction volumes, forestry credit prices, expiry of forestry credits, the demand of forestry credits and negotiation progress in the future commitment period of the Kyoto Protocol. The results showed that the markets for forestry CDM are still at an early stage and have wide space to develop beyond 2012. The volume of trade in the CDM market could reach to more than 75 m of carbon credits before 2012. The year of 2012 would be the most active period for trading activity for forestry CDM. It is suggested that when signing ERPA developers should have some flexibility as to the volume of carbon credits and the time frame of delivery, and choose a combination of up-front payment and payment on delivery in payment schedule, and a fixed price for price setting, and selling lCERs.

Key words: CDM, forestry carbon market, forestry credit price, expiry of forestry credit, reduce emission strategies, transaction strategies