A Core Participation Requirement for Creation of a REDD market

Current proposals for including reduced emissions from deforestation and degradation (REDD) in an international climate agreement go beyond the requirements of the Clean Development Mechanism by advancing national or subnational level accounting, which addresses concerns about project-level leakage. One of the remaining challenges of including REDD in the international trading of greenhouse gas allowances is concern over international leakage. Our research shows that international leakage potential can be quite high if only a small portion of the potential REDD sources are participating.