The Japan Verified Emission Reduction (J-VER) Scheme began in 2008 and includes three forest-management-related projects. Various projects have recently started, primarily involving prefectural governments, municipal offices, and private enterprises; the projected area is generally large. However, the size of typical farm forests in Japan is generally small. The objective of this paper is to determine the current problems in carbon offsetting programs related to the organization of forest owners' cooperatives at the prefectural level. This investigation was conducted in Hyogo and Osaka prefectures. The following problems were identified. First, it is difficult to plan and conduct carbon-offsetting projects with forest owners' cooperatives alone due to the need to sell credits. An offset provider or prefectural trading scheme is also necessary. Second, because the J-VER Scheme is connected to the Kyoto Protocol, uncertainty after the first commitment period would influence further expansion of projects before 2012. Uncertainty in the future calculation method for the carbon sink and in the carbon price will also affect projects. Third, forests that are suitable for projects under the J-VER Scheme are limited because a forest-practice plan under the Forest Act or forest certification is needed as a precondition. To increase the forests that satisfy this criterion, forests that are owned by multiple small-scale owners must be gathered. For these reasons, the rapid adoption of forest-management projects among local forest owners' cooperatives will be limited. Through expansion of various carbon-offsetting projects, an increase in forests with forest-practice plans is expected.
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