Investors are losing interest in the Clean Development Mechanism. Reforms need to happen in Copenhagen in December, a group of 170 companies in the International Emissions Trading Association states.
Marianne Bom The Clean Development Mechanism (CDM) is meant to drive private investments into low carbon projects in developing countries and at the same time reduce carbon emissions. So far the CDM has been successful, but the scheme is facing serious challenges and needs structural reforms, as investors and service providers are “leaving the room”, says Henry Derwent, President and CEO of the International Emissions Trading Association, IETA. “Investors and service providers are leaving the room just as demand promises to ramp up. The CDM Executive Board has done a lot to improve, but needs strong guidance and instruction. A comprehensive reform agenda must be agreed in Copenhagen,” says Henry Derwent. IETA is a 170-member group of companies from all over the world who promote the use of flexible mechanisms as part of the response to climate change. On Friday, just three days before the opening of the climate conference in Copenhagen, IETA released a report, concluding that poor management, delays and conflicting rulings are counteracting CDM investments. The CDM allows emission reduction or emission removal projects in developing countries to earn certified emission reduction (CER) credits. The CERs can be traded and sold, and used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.
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Reuters: Copenhagen talks must mandate CDM reform: IETA
IETA report: State of the CDM 2009 – Reforming for the Present and Preparing for the Future
Information about CDM at UNFCCC’s home page
Cop15.dk: Top scientist hopes that the Copenhagen negotiations fail
Marianne Bom The Clean Development Mechanism (CDM) is meant to drive private investments into low carbon projects in developing countries and at the same time reduce carbon emissions. So far the CDM has been successful, but the scheme is facing serious challenges and needs structural reforms, as investors and service providers are “leaving the room”, says Henry Derwent, President and CEO of the International Emissions Trading Association, IETA. “Investors and service providers are leaving the room just as demand promises to ramp up. The CDM Executive Board has done a lot to improve, but needs strong guidance and instruction. A comprehensive reform agenda must be agreed in Copenhagen,” says Henry Derwent. IETA is a 170-member group of companies from all over the world who promote the use of flexible mechanisms as part of the response to climate change. On Friday, just three days before the opening of the climate conference in Copenhagen, IETA released a report, concluding that poor management, delays and conflicting rulings are counteracting CDM investments. The CDM allows emission reduction or emission removal projects in developing countries to earn certified emission reduction (CER) credits. The CERs can be traded and sold, and used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.
Read more
Reuters: Copenhagen talks must mandate CDM reform: IETA
IETA report: State of the CDM 2009 – Reforming for the Present and Preparing for the Future
Information about CDM at UNFCCC’s home page
Cop15.dk: Top scientist hopes that the Copenhagen negotiations fail
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