Carbon trading

Papua New Guinea is home to part of the third largest contiguous rainforest left on earth - a forest that is now increasingly valued for its carbon storage and sequestration.

PNG, as part of the Coalition of Rainforest Nations, has been pushing for international recognition of the role its forests could play in climate change mitigation at the same time as allocating ever larger areas of forest for unsustainable logging and clear-felling. 

In May 2010 the PNG government submitted a proposal to Norway for up to $1 billion dollars in funding in return for PNG taking steps to reduce its carbon emissions and tackle forest loss - read more.

While in October 2010, Greenpeace published a report, PNG is not Ready for REDD (see below for download) criticizing the PNG government for seeking carbon financing while still supporting illegal and unsustainable logging, stalling international climate talks and failing to respect indigenous people's rights.

Meanwhile, on the ground, PNG has been over-run by 'carbon cowboys'  looking to sign up landowners to forest management deals that will be traded on the informal voluntary carbon markets. Several 'bingos' (big international non government organisations) are also working with landowners to establish 'carbon projects' or 'concepts'.

Revelations about 'fake' carbon certificates led to the disbanding of PNGs Office of Climate Change in 2009.

In September 2011 ACT NOW! along with hundreds of concerned groups worldwide, signed a NO REDD letter to the international donor community.

The REDD Monitor offers an excellent commentary on the unfolding drama of carbon trading in PNG. 

The Forest Management Alliance is one organisation that claims to be involved in carbon trading projects in PNG. According to its website it is involved in projects covering more than 2 million hectares of forest and has signed agreements with landowners.