616 
at least 69 percent of forest land converted to pasture 
or cropland was cleared illegally. 
(4) The growing demand for timber and agricul-
tural commodities has accelerated unsustainable—and 
often illegal—logging and the trade of timber prod-
ucts, which harms the countries in which it takes 
place by siphoning away government tax revenue, 
transforming the livelihoods of communities depend-
ent on forests, and hurting legal businesses’ competi-
tiveness. Further, illegal logging and illegal conver-
sion of forest to agricultural land threatens biodiver-
sity and accelerates deforestation and forest degrada-
tion in key timber supply countries, undermining 
United States and global climate goals. 
(5) The United States should work with inter-
national partners to ensure that Chinese and other 
banks factor into lending practices the environmental 
and social impact of the companies they finance. This 
should include pressuring the PRC and other coun-
tries to revise regulations to require the banking sec-
tor not to finance companies linked to deforestation 
and include rigorous checks on the companies oper-
ating in sectors or regions where there is a high risk 
of deforestation to ensure they are not associated with 
deforestation. 
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(b) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—Except as otherwise ex-
pressly provided, the term ‘‘Administrator’’ means the 
Administrator of the United States Agency for Inter-
national Development. 
(2) DEFORESTATION.—The term ‘‘deforestation’’ 
means a change in land use from a forest (including 
peatlands) to any other land use. 
(3) DEVELOPING
COUNTRY.—The term ‘‘devel-
oping country’’ means a country eligible to receive of-
ficial development assistance according to the income 
guidelines of the Development Assistance Committee 
of the Organisation for Economic Co-operation and 
Development. 
(4) EMISSIONS REDUCTIONS.—The term ‘‘emis-
sions reductions’’ means greenhouse gas emissions re-
ductions achieved from reduced or avoided deforest-
ation under this section. 
(5) FOREST.— 
(A) IN GENERAL.—The term ‘‘forest’’ means 
a terrestrial ecosystem, including wetland forests, 
comprised of native tree species generated and 
maintained primarily through natural ecological 
and evolutionary processes. 
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618 
(B) EXCLUSION.—The term ‘‘forest’’ does 
not include plantations, such as crops of trees 
planted by humans primarily for the purposes of 
harvesting. 
(6) FOREST
DEGRADATION.—The term ‘‘forest 
degradation’’ is any reduction in the carbon stock of 
a forest due to the effects of human land-use activities, 
including such land-use activities on peatlands. 
(7) INTACT FOREST.—The term ‘‘intact forest’’ 
means an unbroken expanse of natural ecosystems 
within the global extent of forest cover that— 
(A) covers an area of at least 500 square 
kilometers and is at least 10 kilometers in each 
direction; and 
(B) contains forest and non-forest eco-
systems minimally influenced by human eco-
nomic activity and large enough that all native 
biodiversity, including viable populations of 
wide-ranging species, could be maintained. 
(9) LEAKAGE.—The term ‘‘leakage’’ means the 
unexpected loss of anticipated carbon benefits due to 
the displacement of activities in a project area to 
areas outside the project, resulting in carbon emis-
sions. 
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619 
(10) LEAKAGE
PREVENTION
ACTIVITIES.—The 
term ‘‘leakage prevention activities’’ means activities 
in developing countries that are directed at preserving 
existing forest carbon stocks, including forested wet-
lands and peatlands that might, absent such activi-
ties, be lost through leakage. 
(11) NATIONAL DEFORESTATION REDUCTION AC-
TIVITIES.—The term ‘‘national deforestation reduc-
tion activities’’ means activities in developing coun-
tries that reduce a quantity of greenhouse gas emis-
sions from deforestation that is calculated by meas-
uring actual emissions against a national deforest-
ation baseline established pursuant to subparagraphs 
(B) and (C) of subsection (d)(4). 
(12) SUBNATIONAL DEFORESTATION AND FOREST 
DEGRADATION
REDUCTION
ACTIVITIES.—The term 
‘‘subnational deforestation and forest degradation re-
duction activities’’ means activities in developing 
countries that reduce a quantity of greenhouse gas 
emissions from deforestation and forest degradation 
that is calculated by measuring actual emissions 
using an appropriate baseline, or an alternative de-
termined under subsection (d)(4)(B)(ii), established 
by the Administrator at the State or provincial level. 
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(c) PURPOSES.—The purposes of this section are to 
provide United States assistance to developing countries to 
develop, implement, and improve actions that reduce defor-
estation and forest degradation or conserve or restore forest 
ecosystems— 
(1) to protect the value of forest ecosystems with 
respect to permanent carbon capture and sequestra-
tion in a manner in which such value is measurable, 
reportable, and verifiable; and 
(2) in a manner that— 
(A) is consistent with and enhances the im-
plementation of complementary United States 
policies that support the good governance of for-
ests, biodiversity conservation, and environ-
mentally sustainable development; 
(B) takes into consideration the views and 
participation of local communities and most vul-
nerable communities and populations, particu-
larly forest-dependent communities; and 
(C) incorporates the right to free prior and 
informed consent of indigenous peoples. 
(d) EMISSIONS REDUCTIONS THROUGH REDUCED DE-
FORESTATION.— 
(1) ESTABLISHMENT
OF
PROGRAM.—Not later 
than 1 year after the date of the enactment of this 
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