Deforestation, mainly conversion of forests for agriculture activities, has been estimated at an alarming rate of 13 million hectares per year (in the period 1990-2005). Deforestation results in immediate release of the carbon stored in trees as CO2 emissions. It is estimated that deforestation contributed globally to approximately 20 per cent of annual greenhouse gas emissions in the 1990s. According to the IPCC in its Fourth Assessment Report, reducing and/or preventing deforestation is the mitigation option with the largest and most immediate carbon stock impact in the short term. At present, developing countries can implement afforestation and reforestation project activities
under the Clean Development Mechanism. However, the potential role of forests in the mitigation of climate change in developing countries is still limited.