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Community guidelines for accessing forestry voluntary carbon ... - FAO

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Chapter 3: Getting started<br />

£ Land ownership rights/land tenure<br />

£ National taxes on <strong>carbon</strong> transactions<br />

£ Contract law<br />

If the government does NOT have clear and supportive policies regarding<br />

the above, the policy context may not be conducive to implementing a<br />

<strong>for</strong>estry VCM project. Likewise, if there is significant political instability,<br />

then investors may be unwilling to accept the risks of supporting<br />

projects in the country. To ascertain whether such risks are manageable,<br />

additional questions may be asked, including:<br />

£<br />

Do government officials have sufficient authority, and<br />

technical capability, to promptly clarify legal and policy<br />

questions relating to <strong>carbon</strong> transactions?<br />

£ Is the current government inclined to provide such clarity?<br />

£<br />

Is current (and likely future) policy and legislation<br />

on environmental services and/or the role of <strong>for</strong>ests<br />

conducive to the development of <strong>for</strong>estry VCM projects?<br />

Depending on the answers to these questions, the risk of national policy<br />

and legislation undermining the viability of the project may be either<br />

acceptable or unacceptable to investors.<br />

3.1.4 On-the-ground partners<br />

A <strong>for</strong>estry VCM project cannot be implemented successfully without<br />

reliable local partners. It is there<strong>for</strong>e wise to assess whether prospective<br />

partners have the necessary institutional capacity to oversee complex<br />

projects. Such an assessment should cover the following issues:<br />

83

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