Currently, the only land-use, land-use change and forestry (LULUCF) activities that are eligible under the Clean Development Mechanism (CDM) are afforestation and reforestation (A/R), which allows for the generation of credits by net removal by sinks. This could include afforestation and reforestation of wet organic soils (peatlands), e.g. with swamp forest tree species.
Conservation, rehabilitation and improved management of (non-forested) peatlands are currently not eligible under the CDM, although the potential for reducing high greenhouse gas emissions is large. Including avoided peatland drainage and peatland rewetting in the CDM would therefore cover an important gap and provide an incentive for very effective and low cost measures for climate change mitigation. In addition, these projects would deliver significant non-carbon benefits in terms of ecosystem services, biodiversity, indigenous people’s rights, and prevention of soil subsidence and fire hazards.