1. Approach = WHAT Estimates of:When and whereWhen Changes in stocks Stock changeProduction EmissionsAtmospheric flowSimple decay

2. Revised IPCC 1996 Guidelines annual biomass growth versus annual harvest, including the decay of forest products and slash left during harvest Atmospheric impact = SF – DF – LM – DP Where SF = sequestration in the forest DF = decay of residues in forest LM = losses at mills during processing (burnt to waste or used for energy) DP = decay of products (related to lifetime in use or in disposal sites) Atmospheric impact = SF – DF – Harvest only if instant oxidation on leaving the forest

3. Stock changes or Emissions Deforestation non-Kyoto countries Pre 1990 CDM Forest management A&Re-forestation ForestsProducts Stock change In all forests Resulting from activities since 1990 Sinks In all forests Resulting from activities since 1990 Within national boundaries = from activities within national boundaries Stock change In all products In products manufactured since 1990 In products resulting from activities since 1990 Sources from All harvested wood burning and decay Harvested wood since 1990 Harvested wood resulting from activities since 1990 Within national boundaries (incl import-export) From domestic activities (excl import-export)

4. Simple Decay approach stocks resulting from activities Sink Source – residues Source – products Stock Time Tier 1 – at harvest Tier 2 – default categories and lifetimes Tier 3 – improved categories and lifetimes

5. Consistency  Residues: oxidise immediately or decay  Reversal of sink when it occurs  Applicable at project or national scale  Consistent reporting and accounting  Desirable outcomes (submissions)

6. Sustainable Forest Management Sawlog regimePulplog regime Stock

7. Bioenergy and Processing  Emissions remain responsibility of producer  no change to bioenergy or trade impacts  Improved inventory accuracy  Favour long rotations for sawlogs  Encourage high conversion (to product) efficiency  Sawmills least energy intensive  Opportunity for energy exporting sector  Including waste disposal sites reduces incentive for bioenergy

8. Inventory impact Emissions (during the year)Stocks (end of year) YrGrowthHarvest1234512345 1100 505555 45403530 2100 50555 454035 3100 5055 4540 4100 505 45 etc100 50 Emit/year5055606570Total5095135170200 change5045403530 annual biomass growth versus annual harvest, including the decay of forest products and slash left during harvest Production Approach: growth – harvest + hwp stock change Simple decay: growth - emissions

9. Inventory impacts HarvEmissions (tC) YearTypetC1234567 1Pine1005010 1SRF10050 1Defor100 Total200 6010 2Old6010 2Sawn1005010 2Pulp10050 Total2001607020 10

10. Conclusions Simple Decay approach  Described in 1996 Guidelines  Satisfies Marrakesh principles  Simple to apply (all Tiers)  National reporting and accounting  Scaleable  Promotes sustainable forest management  Promotes bioenergy Management of products is separate issue