Temporary emission allowances from afforestation and reforestation activities under the EU ETS


  • Ignacio Bachiller Méndez Repsol YPF, S.A.
  • José Luis Fernández-Cavada Labat Universidad Politécnica de Madrid
  • Jaime Martín Juez Repsol YPF, S.A.




Temporary allowances, EU ETS, afforestation, CDM, reforestation


The authors have assessed the regulatory framework set by the UNFCCC (United Nations Frame Convention on Climate Change), the Kyoto Protocol and its Flexible Mechanisms, including the CDM (Clean Development Mechanism), and the EU ETS (European Union Emissions Trading Scheme). After this general overview, the article shows how afforestation and reforestation activities have been incorporated into the CDM process and its current consideration under the EU ETS. Transaction costs of these types of CDM project activities are analyzed, together with the state of the temporary allowances market. Finally, taking into account the above mentioned elements, the authors draw several conclusions on the opportunity and expectations of the future development of this market.


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Author Biographies

Ignacio Bachiller Méndez, Repsol YPF, S.A.

Dirección de Seguridad y Medio Ambiente

José Luis Fernández-Cavada Labat, Universidad Politécnica de Madrid

Dep. de Economía y Gestión Forestal, ETS de Ingenieros de Montes

Jaime Martín Juez, Repsol YPF, S.A.

Dirección de Seguridad y Medio Ambiente


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