The usability of carbon markets as a financial instrument in forestry sector

There have been many international studies and cooperations to avoid climate change as being a global disaster. In this context, international agreements such as United Nations Framework Convention on Climate Change and Kyoto Protocol have been signed and as a result of these agreements a global carbon market has emerged as a cost-effective method to combat climate change.Thanks to carbon markets, projects aiming to reduce greenhouse gas emissions can be developed and abatement certificates obtained in these projects can be sold there. In addition, a great deal of sectors gets financial support from these markets. Turkey cannot take part in these markets because of its unique position in climate change mitigation process and negotiations are proceeding to get financial support for different sectors from these markets. Forestry sector is one of these sectors.This study analyzes utilization possibilities of Turkey?s forestry sector, which is a state-owned and a government-financed sector, in carbon markets. Within this scope, it primarily focuses on the current situation and future trends of forestry sector in carbon markets around the world. Then, it assesses the utilization potential of forestry sector in Turkey, as having a unique position in climate change regime, from carbon markets.As a result, it is determined that in the current situation, forestry sector can benefit from voluntary carbon markets and based on negotiation results, REDD, NAMA and flexible mechanisms give charming opportunities for forestry sector in the future.Key Words:Regulatory carbon markets, voluntary carbon markets, forestry sector, United Nations Framework Convention on Climate Change, Kyoto Protocol