Clean Development Mechanism (CDM) projects create Certified Emission Reductions (CER), more commonly known as "carbon credits". These credits represent an important alternative for developed countries to comply with their goals in the greenhouse gas emissions reduction agreement, as established by the Kyoto Protocol.

Carbon credits created by forests can lead to the creation of a number of CDM projects, thus generating new initiatives to fight global warming and offer a higher incentive to reforestation activities. However, as result of many restrictions, forest carbon credits are still not eligible for offsetting emissions.

The Brazilian planted trees industry proposes changes to the current wording of the Kyoto Protocol that would lead to improving the CDMs and advocates that forests—be them native or planted—absorb and store CO2 from the atmosphere. The main points of interest in the segment of negotiating new climate policies are:

Temporality - The current text states that native and planted forests are not permanent drains of CO2 as they are vulnerable to nature—fires, weather and floods—and other "acts of God" and could be destroyed. For that matter, the industry proposes: periodical forest monitoring to measure the CO2 absorption rates, amount of carbon stored and forecast the forest absorption potential. This information guarantees the supply of forest carbon credits available for trade.

Create insurance and reinsurance lines for planted forests in order to offer guarantees to the market and replenishment of carbon inventory.

Guarantee the commitment of stakeholders to replenish carbon inventory in case of potential reductions.

Additionality – The current wording sets forth that planted forests absorb CO2 temporarily, because when they are harvested, all the stored carbon goes back to nature, turning wood into diverse applications and its other by-products. For that issue, the industry clarifies:

- The planted forests absorption cycle is never interrupted. As soon as a tree is harvested, a new seedling is planted in the same place, thus guaranteeing the maintenance of stored carbon.

Eligibility of the area – The current wording does not include planted forests, comprehensively, before December 31, 1989 as an activity eligible for CDM. Current rules only consider reforestation of areas, not mentioning forests on that date. For that matter, the industry:

-Negotiates that the forestry base planted as from 1990 is eligible for replanting, generation and sale of carbon credits. This matter is essential and a prerequisite so that future carbon credits may be sold through the Kyoto Protocol.