COMPARATIVE ASSESSMENT OF THE POTENTIAL FOR FOREST CLIMATE PROJECTS' IMPLEMENTATION CASE STUDY: AFFORESTATION AND VOLUNTARY FOREST CONSERVATION BY TENANTS

One of the most important task of the world community, fixed both at global and national level, is the adoption and fulfillment of commitments aimed at decarbonizing economy in the context of energy transition. Technological projects are being developed to reduce, capture, store and utilize greenhouse gas emissions, as well as natural solutions are aimed at increasing the absorption capacity of ecosystems. Forest climate projects are of particular interest in achieving the goals of decarbonization of the economy. In this study simplified carbon and economic models of two types of forest climate projects (afforestation and voluntary forest conservation) have been compiled. Based on the models, a comparative assessment of investing results in these climate projects has been carried out, which can be used by investors when planning their projects. According to the simulation results, the cost of carbon units in the voluntary forest conservation project is slightly higher than in the afforestation project. At the same time, during the period of implementation of the afforestation project, the gross profit is higher, and such projects are more interesting for long-term investments, while the price of carbon units of the “removal” type will increase according to all forecasts.