"This is really important because it's tangible progress that we can make on the ground that is good for the planet and it's a significant source of carbon in the atmosphere today -the destruction of the forests," Prentice said in an interview with Canwest News Service. "It is one of the most significant causes of global warming that we can address in a hands-on way."

Although Canada has not yet confirmed its total contribution to the initiative, several developed countries, including the U.S., France, Australia and Norway pledged contributions that added up to more than $4 billion for the initiative, Reducing Emissions from Deforestation and Degradation. The total represents a portion of a "Fast Start Fund" of $10 billion agreed to by developed countries at an international climate change summit last December in Copenhagen, Denmark.

The countries, which estimated that deforestation is responsible for 20 per cent of annual global greenhouse gas emissions, committed to address the issue at Copenhagen. The related emissions from the forestry sector are estimated to be greater than the carbon dioxide pollution from every motorized vehicle on the planet.

Prentice said Canada also could offer advice to developing countries about how it has protected its own forests under a certified program for industry that covers one of the largest areas of its kind in the world.

"Canada has got a particularly remarkable history in terms of forest management," he said. "We have one of the largest boreal forests in the world and we're very serious about our obligations to manage it and conserve it."

But a coalition of environmental groups said the developed countries must also address a loophole in international climate negotiations that would allow them to increase emissions in their own logging industries for several years, before setting a reference level from which they must reduce pollution. Chris Henschel, the national manager of domestic and international policy at the Canadian Parks and Wilderness Society said countries should close the loophole during the next round of climate negotiations next week in Germany.

Meantime, Prentice said the Canadian government has increased its existing contribution to the Global Environment Facility, an international environmental fund. It will be contributing $54.8 million per year from 2010 to 2014.

"This is an important part of Canada's international environmental participation," Prentice said. "We are in fact, the sixth largest donor to the GEF."

Countries and scientists from around the world have agreed that greenhouse gas emissions must be dramatically reduced within years to prevent global temperatures from rising more than two degrees Celsius above preindustrial levels and causing irreversible damage to the earth's ecosystems. But they have not yet negotiated binding targets or commitments to achieve that goal.