Carbon flow payments, on the other hand, do not provide an adequate economic incentive to slow deforestation because forests are more or less in equilibrium and thus do not sequester additional carbon. If the Kyoto Protocol were amended to allow for conservation of forest carbon, a few potential CDMs could provide inexpensive carbon offsets, alleviate poverty, and preserve biodiversity. Sustainable forest management, for instance, increases both farm income and carbon and forest preservation and could provide inexpensive carbon offsets. Other projects could also provide inexpensive carbon offsets and preserve biodiversity, but would require additional income and technology transfers to compensate farmers for their lost incomes. Download full-text discussion paper .
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