Carbon trading to reduce tropical deforestation is emerging as a leading strategy to combat harmful climate change while also potentially reducing threats to biodiversity. Funds devoted to this purpose could soon swamp all other investments in tropical conservation, as exemplified by Australia’s recent commitment of $200 million (AU) to reduce deforestation in the Asia-Pacific region.

Here, I briefly explain carbon trading and its rationale. I highlight some of the political and practical hurdles that carbon trading has faced, and continues to face, as an emerging strategy to reduce human-caused carbon emissions and to preserve biodiversity.conservation in this context helps to reduce carbon that is detrimental to humans well being and climatic change.