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Emissions trading allows industries in developed countries to effectively reduce their emissions of carbon dioxide by investing in forest plantations and clean energy projects in developing countries. (See Carbon Credits and Forest Plantations). In theory new growing forests adsorb and store carbon to offset the carbon emitted from industry.

In practise these credits might not be truly additional, for example forestry in one place might be an excuse to de-forest elsewhere. The long-term management of the forest, particularly the susceptibility to fire and drought also needs to be considered.

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Q: How does a forest plantation project in the Philippines earn green or carbon credits under the Kyoto protocol?
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