A compensation program for preserving forests is nearly complete, with a final draft to be prepared for ministerial review on Wednesday.  The program — Reduced Emissions from Deforestation and Forest Degradation (REDD) — has survived debate on its major points of controversy, through a process of mutual bargaining.

Unfortunately this approach to negotiation remains a novelty to the delegates when talks turn to emissions reductions commitments. As of Wednesday morning, the new overarching draft did not address key elements such as greenhouse gas emission cuts, funding for adaptation, or details on how environmental programs may be verified.

The REDD program may turn out to be the most tangible success of the Copenhagen climate change talks. Despite its

high probability of success due to co-benefits shared by both the developed and developing world, the program marks a new high mark in the evolution of carbon economics.  In the case of REDD, ‘doing the right thing’ in terms of forest conservation will now have monetary value.  So perhaps for the first time in human history, economics and forest conservation are linked at the hip.

By monetizing forests, peat soils, swamps and fields these natural landscapes have the potential to become more valuable than parking lots, particle board, mulch, or armoirs.

These new economic mechanisms shouldn’t be underplayed simply because hopes of a binding international treaty fade.  A definite REDD program opens the door for much needed capacity building and early stage private participation.   As a product of more than 200 negotiators, the development of a REDD program illustrates to potential of an aligned agenda at the negotiation table.

In addition to creative allowances for contentious issues, the REDD negotiating process thus far has delivered a notable success, that is, including subnational reference levels as an interim step, subject to safeguards. At this stage the text remains in brackets within the draft, signaling it will be further dissected during ministerial review.  Other key elements still lacking are explicit statements regarding the role of markets and early action, as well as a quantified reduction in gross deforestation by 2020.