Addressing Impermanence Risk and Liability in Agriculture, Land Use Change, and Forest Carbon Projects

Greenhouse gas mitigation projects in agriculture, land use change and forestry involve contracts between farmers and landowners and other parties to reduce greenhouse gases below some baseline level. The buyers may use the credits to meet compliance obligations under a greenhouse gas cap-and-trade program or as part of a voluntary obligation to reduce greenhouse gases. The driving principle is that the projects create real reductions that can offset emissions elsewhere in the system.