There are three key areas of programme involvement:

• Biofuels have important implications for the environment and for the poor. ODI’s research in this area focuses on the linkages between biofuel production systems and poverty, food security impacts, international trade, and the relationships with other forest-policy areas, such as avoided deforestation carbon markets. The work cross-cuts a number of ODI groups, which enables analysis of the whole biofuels supply chain.

• Voluntary carbon markets offer potential benefits for poor rural communities, through income related to tree planting, avoided deforestation and carbon savings in bioenergy systems. F, E & CC has been analysing the extent to which these benefits can be realised and the new risks the market presents, such as reduced access to land and forest products. Research has also looked at the pros and cons of carbon offset standards from a development perspective.

• International incentive schemes for REDD are now a major theme in international climate negotiations, given that deforestation and degradation are responsible for around 20% of global carbon emissions. ODI research has been looking at how the governance and institutional structures of these incentive schemes might be established internationally and within developing countries, and analysing the implications for the poor.