Understanding and managing leakage in forest-based greenhouse-gas-mitigation projects

A major concern about land use, land-use change and forestry (LULUCF) projects under the Clean Development Mechanism (CDM) is the potential for leakage. Leakage refers to a net increase of greenhouse-gas emissions in an area outside the project resulting from the CDM activity. This paper provides an overview of leakage, its definitions and its causes. It describes ways that LULUCF projects may suffer from leakage and attempts to assess the magnitude of leakage risks for different LULUCF project types. It also summarizes some of the approaches, both in terms of policies and project development, to address LULUCF leakage.