Forest sink plan using a carbon offset system

In April 2005, Canada announced the introduction of new systems that could make the best use of market mechanisms, such as the Climate Fund, the Large Final Emitter System, and the Carbon Offset System, in order to achieve the reductions quota during the first commitment period (2008-2012). The Carbon Offset System has very high potential as a system able to push forward the forest sink policy, as it can help companies obtain credits for the GHG sink through forest sink activities recognized by the Kyoto Protocol (Paragraph 3 and 4, Clause 3). It also enables companies to trade GHG sink credits through the domestic emissions trade market. If the Carbon Offset System, which fully uses market mechanisms, is to be applied in Korea during the second commitment period (2013-2017) when Korea will have to deal with the obligations to reduce GHG emissions, it will be applied mostly to the expansion of the forest sink, through active forest management activities, such as afforestation, reforestation, and deforestation - given Korea has far fewer forest areas than Canada. In this case, it will be possible to increase the efficiency of the system by designing and operating it in a manner suitable for the conditions in Korea, including issuing domestic GHG sink credits to each sink developed through forest management, purchasing the credits, or providing additional subsidies. Forest owners might receive economic incentives through this, and it can also encourage new outside investments, such as forestry investments made by enterprises as part of their social contribution efforts.