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a set of definitions to explain the most relevant ones, as these will be mentionedfrequently in this paper:Table 2.3 Definitions of relevant terms in the REDD literatureAdditionality:“Projects must demonstrate real, measurable and long-term benefits inreducing or preventing carbon emissions that would have occurred without theproject. Alternatively, additionality in crediting systems means payments for reducingemissions to a level below the business-as-usual (BAU) scenario.” (Angelsen 2008,p.135.)Leakage: “Carbon leakage is the result of interventions to reduce emissions in onegeographical area (sub-national or national) that lead to an increase in emissions inanother area. For example, if curbing the encroachment of agriculture into forests inone region results in conversion of forests to agriculture in another region this isconsidered to be leakage.” (Angelsen 2008, p.140.)Permanence: “The duration and non-reversibility of a reduction in GHG emissions.Non-permanence can be seen as a form of inter-temporal leakage.” (Ibid.)Reference line/level: “Reference line, or baseline, can refer to three concepts: (1) thehistorical baseline, that is, the rate of deforestation and forest degradation (DD) andthe resulting CO2 emissions over the past x years; (2) the projected DD under abusiness-as-usual (BAU) scenario where the baseline is the benchmark for judgingthe impact of the REDD measures and ensuring additionality; (3) the creditingbaseline, or reference level, is a benchmark for rewarding the country (or project) ifemissions are below that level.” (Angelsen 2008, p.136.)Transaction costs:“Transaction costs are the costs involved in successfully connectingthe carbon buyers and the carbon sellers.”(Angelsen 2008, p.24.)Opportunity costs:“Compensation payments to forest owners for forgoneprofits.”(Angelsen 2008, p.5.)“Opportunity costs are the foregone economic benefitsfrom the best alternative (non-forest) land uses, e.g., the minimum amount alandowner must be paid to be willing to stop deforestation and forest degradation/DD(compensation payment) (Angelsen 2008, p.20.).39