Carbon and financial accounting of projects in the Land Use, Land-Use Change and Forestry sector is a topic of hot debate. Large uncertainty remains concerning the carbon dynamics, the way they should be accounted and the cost efficiency of the projects. Part of the uncertainty can be alleviated by standardisation and transparency of reporting methods. For this reason we further developed CO2FIX, a forest ecosystem carbon model, with modules for carbon and financial accounting. The model is applied to four cases: 1) Joint implementation afforestation project in Romania, 2) Forest management project in Central Europe, 3) Reduced impact logging possibly under the Clean Development Mechanism (CDM) in the future, and 4) Afforestation with native species under the Clean Development Mechanism. The results show the wide applicability of CO2FIX, from degrading grasslands as baseline cases to multiple cohort forest ecosystems. Also the results show that Forest Management in the European case can generate considerable amounts of carbon emission reductions. Further, the results show that although reduced impact logging is not yet an allowed option under the Clean Development Mechanism, it shows promising results in that it is 1) very cost effective, 2) seems to be able to generate intermediate amounts of credits and 3) seems to us as a project type that is not prone to leakage issues. These results are yet another indication to seriously consider reduced impact logging as an eligible measure under the CDM.
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