Paying people to preserve forests seems to work
arstechnica.com
arstechnica.com
The thing about this program is that there's so much bureaucratic nonsense around it, with all kinds of reporting requirements and such, and that if you're not compliant they'll retroactively claw back 10 years worth of benefits if you mess up.
I've got 76 forested acres upstate that was enrolled in this program when I bought it. Despite the tax advantages I pulled the land out of the program as soon as I could. Between the hassle of the red tape, and the fear of the financial repercussions, I didn't want the risk. I still do the stuff they want you to do - it only makes sense, as it provides an income from harvesting the lumber - but my motivation is nothing to do with their program itself.
My point is that when government sets its bureaucracy on what might otherwise be a good idea, they can taint the benefit that it was supposed to carry, making it ineffective.
Not always. Section 1603 of the 2008 ARRA created a program whereby the Treasury would cut you a check (not a tax credit) for 30% of the cost of any commercial renewable energy installation. There was minimal red tape. You basically had to provide a subset of the documents you as when you financed it. This significantly sped up solar and wind adoption in the US.
Edit: The Treasury would send said check within 30 days of you proving that the system was operational.
Since the benefit of trees is a collective one, it makes sense for the government to tax people to pay the tree owners.
I'm guessing that there will be more pressure to have similar programs in developing nations.