New study on Clean Development Mechanism published
A new AEA-led study has provided an in-depth assessment of the integrity of the Clean Development Mechanism (CDM) for the European Commission. The report was prepared for the Directorate-General for Climate Action (DG Clima), with the support of the Stockholm Environmental Institute (SEI), the Centre for European Policy Studies (CEPS) and CO2logic.
Director General for Climate Action Jos Delbeke offered the following comment on the study: “While the Clean Development Mechanism carries great promise in delivering cost-effective greenhouse gas emission reductions in developing countries, it has also given rise to criticisms and concerns about some project categories. Despite some progress made, further reforms of the CDM are necessary. I therefore warmly welcome the decision by the UNFCCC and the CDM Executive Board to initiate a high-level policy dialogue about the future of the CDM. The study on various aspects of the CDM, which we present today, can provide input to these discussions.”
The project provides a comprehensive appraisal of the strengths and shortcomings of the CDM and develops practical reform options covering measures that could be taken by (a) the UN within the CDM process (supply side measures), (b) those that could be taken by the EU regarding the use of CDM credits within the EU ETS (demand side measures) as well as examining (c) the potential for alternative mechanisms.
The consortium produced a series of briefing papers looking at the state of play and options for reform in respect of specific aspects of the CDM as well as one paper focussing on Joint Implementation (see full list below). These reform options were then assessed and recommendations developed for the Commission on:
a) how the EU could promote change through the UNFCCC process for standardised approaches;
b) what the EU could do unilaterally to leverage change in the CDM, with a focus on the CDM hydro sector, and;
c) how sectoral crediting mechanisms could overcome some of the concerns with the CDM and what the EU could do to promote progress on this front.
Published on 16 December 2011, the study can be downloaded from DG Clima’s website here, along with the Commission’s introductory remarks on the study and the background papers:
Briefing paper "Governance of the Clean Development Mechanism (CDM)"
Briefing paper "Baseline Setting and Additionality Testing within the Clean Development Mechanism (CDM)"
Briefing paper "Sustainable Development and Social Equity"
Briefing paper "Technology Transfer through the Clean Development Mechanism (CDM)"
Briefing paper "Political Lock-in in the context of the CDM"
Briefing paper "JI Track 1 preliminary assessment"
Scoping paper "The potential for CDM induced leakage in energy intensive sectors"