The Role of Development Finance Institutions (DFIs) in␣Promoting the Clean Development Mechanism (CDM) in Africa

This article outlines some of the latest developments and opportunities for development finance institutions¹ (DFIs) to become directly supportive of the Clean Development Mechanism (CDM²) in Africa. In striving to make development financing more environmentally friendly and sustainable, DFIs can play a key role in promoting the CDM on the African continent by providing monetary incentives through their project financing activities; encouraging and facilitating partnerships in support of sustainable development, particularly with reference to the CDM, and; providing technical advice and support to clients with regard to project design, planning and implementation. DFIs have traditionally focused on financing infrastructure and poverty alleviation projects. However, the emergence of the CDM has brought about a shift towards investments in services and products that reduce carbon dioxide emissions and encourage investments in environmentally friendly technologies. This can be ascribed in part to the development of a “carbon market” under the auspices of the Kyoto Protocol that took effect in February 2005. The carbon market and emerging carbon funds are some of the main drivers enabling DFIs to play an increasingly important role in promoting the CDM in Africa.     

CDM Project Activities in China＇s Iron and Steel Industry：Current Status,Barriers and Development Strategies

China is now facing huge pressure from both the domestic concern of energy security and the global community's call for emission reduction commitment. As one of the major energy consumers and greenhouse gas emitters, China's iron and steel industry has a huge clean development mechanism (CDM) potential. This article both quantitatively and qualitatively analyzes the current status of CDM project activities in the iron and steel industry in China, including characteristics of approved project types, applicable methodologies, and potential technology fields. From the perspective of project implementation, the article summarizes development barriers such as high investment risk, difficulty in project identification, strict requirements on PPDs, long registration waiting time, and etc. Policy suggestions are also put forwarded to help better promote the development of CDM projects in the iron and steel industry.     

A Comparative Study on the Implementation of CDM Projects in India

Since the Clean Development Mechanism(CDM) under the Kyoto Protocol was initiated,China and India have overwhelmingly led other developing countries regarding CDM projects development.A comparative study of the CDM in India and China is conducted as there are many similarities between both India and China with regard to the CDM implementation due to the fact that India is another major developing country with a large population and a potential source of GHG emissions rivaling China in the near future.Through examining the development of and legal issues for CDM projects in India,its experience and lessons regarding developing and managing CDM projects that China can critically learn are discussed.     

Whither the CDM? Investment outcomes and future prospects

Following an abrupt fall in carbon credit prices, 2012 has witnessed a disinterest on behalf of investors in the Clean Development Mechanism (CDM). In this paper, we aim to take a step back and provide an assessment of the CDM through a careful analysis of 6 instrument evaluation criteria. Our study indicates that, despite the important number of projects developed under the CDM, the initial ambition of a scheme that would contribute to sustainable development in developing countries has not materialised. Moreover, the environmental integrity of numerous projects is seriously questioned. Given the interaction of the mechanism with other national policies, notably in the renewable sector, the search of carbon reduction opportunities does not lead to cost-effective abatements. If the CDM governance does not score really well in terms of predictability, the mechanism’s transparency is an example for the development of future climate and development policies at a multilateral level. Finally, the lack of consideration for the demand side of the offset mechanism seriously jeopardises the persistence of this instrument. Therefore, we recommend that any CDM reform considers the demand side, for instance through the setting of a guaranteed minimum price coupled with an obligation of repurchase. One cannot expect progress in host countries if new sources of demand for carbon credits are not rapidly created in developed countries.     

The role of the clean development mechanism in achieving China��s goal of a resource-efficient and environmentally friendly society

This paper examines the impact of the clean development mechanism (CDM) on China??s progress in building a resource-efficient and environmentally friendly society, referred to as a dual-goal society. It presents China??s CDM activities from the perspective of policy directions, administrative arrangements and capacity building as well as outlines the regional trends and distribution of CDM projects across China??s 30 provinces. Based on regression analysis of 2006?C2009 panel data, the research was able to provide estimates at provincial level of the impacts of CDM activities on China??s CO₂ emission intensity, SO₂ emission intensity and industrial dust emission intensity. The study concludes that the active CDM projects are mainly located in the less-developed central and west China where they have provided increased opportunities for sustainable development. Furthermore, the successful implementation of CDM projects across the country has significantly decreased the emission intensity of CO₂, SO₂ and industrial dust, which means that these activities have enhanced China??s ability to build the desired dual-goal society.     

CDM Projects under the Kyoto Protocol: A Methodology for Sustainability Assessment – Experiences from South Africa and Uruguay

Under the Clean Development Mechanism (CDM) of the Kyoto Protocol, industrialised countries may finance greenhouse gases mitigation projects in developing countries. The Kyoto Protocol explicitly requires that the CDM shall assist developing countries to achieve sustainable development. However, a clear definition of sustainability for CDM projects is still debatable. MATA-CDM (Multi-Attributive Assessment of CDM Projects) is an approach that facilitates a quantitative assessment of potential projects regarding their contribution to sustainable development. This paper presents applications of MATA-CDM in two different countries. In South Africa, the application was done mainly for academic and demonstrative purposes, whereas in Uruguay it was implemented together with the responsible Designated National Authority (DNA). The work in both countries included the selection of sustainability criteria and measurable indicators. Experts weighted the criteria using personal interviews and a multi-stakeholder workshop. This method was applied to three potential CDM projects in South Africa and one in Uruguay. Results show that under the conditions of this study, the MATA-CDM approach yet fails to yield a perfect quantitative overall sustainability assessment of CDM projects but that several findings could be useful to further develop the approach with the aim to translate the vague term sustainable development to a mainstream project level. Valuable experience was in particular collected with different stakeholder processes to perform criteria weighting.     

中国垃圾填埋气回收利用CDM项目现状与对策

根据最新数据，运用统计学方法，从总体情况、地理分布、国际比较、国外合作方和开发机构4个方面分析了当前我国垃圾填埋气回收利用CDM项目发展的现状：与其他类型CDM项目相比，垃圾填埋气回收利用项目规模小，估计年减排量少；项目签发量远少于设计估算的年减排量；年批准项目数增长快，项目主要分布在我国东部、中部地区及省会城市和计划单列市；相比其它类型的CDM项目，中国在垃圾填埋气回收利用CDM项目上位于全球第二位，而拉美国家占据优先；项目主要的国际合作方为欧盟国家。最后总结了项目开发发展中遇到的主要问题，并提出解决问题的多项政策建议     

可持续发展目标下的清洁发展机制项目评价

清洁发展机制（CDM）是《京都议定书》规定的发达国家和发展中国家之间项目级的合作机制，CDM项目的目标之一是促进发展中国家的可持续发展。在京都议定书最终生效的背景下．CDM项目的开发与能力建设成为热点。本文基于多目标决革理论。讨论CDM促进可持续发展与否的评价方法。以国际最新的研究为基础。作者构建了CDM项目可持续评价的指标化体系。建立了评价过程。并将其应用刭具体的案例——内蒙古辉腾锡勒风电CDM项目的评价中。研究可以为中国的CDM潜在项目的选择、比较和批准等实践活动提供定量的方法和思路。这对于中国成为CDM国际合作中的重要参与者以及促进中国的可持续发展都具有重要的意义。     

THE Clean Development Mechanism: Making it Operational

The Clean Development Mechanism (CDM) is a facility for trading `certified emission reductions (CERs) between developing and developed countries, thus saving non-renewable carbon emissions by promoting renewable energy, energy efficiency and/or carbon sequestration projects in LDC's. The purpose of the CDM is to help these latter countries meet their obligations under the Kyoto Protocol while at the same time promoting “sustainable” development in the former countries, thereby reducing the build-up of greenhouse gases (GHG). This paper examines the progress in achieving a workable CDM in time for the first commitment period (2008–2012), and the kinds of initiatives that can be pursued in the agricultural, land-use and forestry sector in tropical countries. The critical element for the success of the CDM is the participation of a broad cross-section of buyers (ultimately from developed countries) and sellers (from developing countries) of CERs. Trading is the final step, which starts with project formulation, through successful implementation and then certification. This paper lays out a market-based framework for promoting CDM transactions between private sector project developers and traders and public sector policy makers, with regulators, governed by CDM rules, overseeing the smooth running of the CDM. However, as there are numerous players; it is proposed that trial CDM projects be demonstrated with the support of National/International bodies to iron out the problems and come up with practical solutions so that carbon trading can become a reality. Most rules for the CDM were clarified at the 7th Conference of Parties (CP) in October/November of 2001 in Marrakesh. An executive Board (EB) was appointed and this EB is in charge of proposing workable ground rules to promote the CDM. These have to be submitted for approval by the 8th CP in late 2002. Three broad kinds of projects qualify for the CDM, these are: renewable energy projects that will be alternatives to fossil fuel projects; sequestration projects that offset GHG emissions; and energy efficient projects that will decrease the emissions of GHG. It is possible to have a combination of these initiatives. A fourth type covering GHG reduction is omitted. As elaborated in the text, in order to qualify for the CDM, the proposed projects may have to have additional costs when compared to the alternative(s). Two time frames have been agreed for CDM projects to qualify for the first commitment period, namely 7 years (with an option of two 7-year renewals) and 10 years. Also, for land-use, land-use change and forestry projects only afforestation/reforestation initiatives are recognized as being permissible for the first commitment period. These rules seem rather shortsighted, as forestry and/or renewable energy projects usually require more than 21 years to be fully effective. Also, the major cause of deforestation is clearing land for agriculture, not harvesting wood. Therefore, improving agricultural productivity may be the best way to reduce deforestation and its subsequent release of GHGs. These conditionalities should be re-examined when rules for the second commitment period are decided. However, various agricultural and land-use projects are discussed under the existing guidelines which could qualify as CDM projects in the first period.     

Wind power projects in Brazil: challenges and opportunities increasing co-benefits and implications for climate and energy policies

The purpose of this article is to analyze the challenges to, and opportunities for, increasing sustainable development (SD) co-benefits delivered by clean development mechanism (CDM) wind power projects in northeastern Brazil and the resulting implications for climate and energy policies. Five methodological phases were met: First, a documentary research was conducted in the main CDM database; second was a literature review, creating the analytical framework and a survey questionnaire needed to assess the SD co-benefits from the projects; third, documentary research was used to enable ex-ante analysis of the SD co-benefits proposed in the CDM Project Design Documents (PDDs); fourth, survey allowed for the analysis of SD co-benefits perceived by project entrepreneurs (ex-post analysis); and finally, a comparison between the ex-ante and ex-post analyses was completed. The results show the importance of carrying out SD co-benefit studies after the implementation of CDM projects in order to learn lessons for new mechanisms of climate governance. The lowest SD co-benefits were water management improvement in the project influence area, soil pollution prevention, health and safety improvements and technology transfer. The greatest opportunities for increasing SD co-benefits come from the environmental licensing process and the strengthening of Corporate Social Responsibility. The greatest challenges are new technology development, stakeholders’ engagement and SD co-benefit audits. We conclude that the improvement of multi-level climate and energy governance plays a key role in increasing SD co-benefits.

     

The financial additionality and viability of CDM projects allowing for uncertainty

Financial additionality and viability for Clean Development Mechanism (CDM) projects is commonly demonstrated through deterministic internal rate of return (IRR) benchmark analysis, supplemented with a sensitivity analysis. This method is vulnerable to assumptions on cash flows (including that from carbon credits) and is unable to differentiate grades of separation from the benchmark. This paper examines the financial additionality test and viability in the presence of cash flow uncertainty, where IRR becomes a random variable. A case example project involving wind power is exampled. It is seen that the boundaries between acceptance and rejection as a CDM project based on financial additionality and viability tests become blurred, leading to possible alternative conclusions. Comment is given on false positives and false negatives, in terms of acceptance and rejection of projects.     

清洁发展机制与中国碳排放交易市场的构建

清洁发展机制是《京都议定书》创设的实现全球碳减排目标的三大灵活机制之一,为我国的可持续发展作出了重大贡献,但其在我国运行中存在的问题也对我国参与国际碳市场和构建国内碳市场带来了风险与障碍.针对于此,本文对中国清洁发展机制项目的类型、数量、注册、签发等情况进行对比,发现我国虽然项目众多,但发展极不平衡.在此基础上,分析了中国清洁发展机制存在的主要问题,包括法律保障机制缺失,项目减排潜力发挥不充分,缺乏对转让技术的科学评估等.然后,通过介绍国际碳排放交易市场发展的不确定性和在2012年“后京都时期”的发展趋势,揭示了中国在这一过程中所承担的项目投资减少、成本增加等市场风险以及“碳泄漏”等环境风险.针对上述问题和风险,本文提出以现有清洁发展机制经验为基础构建中国国内碳排放交易市场的基本思路,即建立以排放交易法律体系为基础,以自愿碳交易市场构建为起点,以完善的监督管理体系为保障的中国碳排放交易机制.     

Is the Clean Development Mechanism delivering benefits to the poorest communities in the developing world? A critical evaluation and proposals for reform

This paper explores whether the Clean Development Mechanism (CDM), a flexibility mechanism under the Kyoto Protocol, has contributed to poverty alleviation in countries that host CDM projects. We argue that the CDM should deliver pro-poor benefits to the communities in which projects are established, since poverty alleviation is integral to sustainable development, which is one of the main purposes of the CDM. After briefly discussing the background of the CDM, we discuss assessment difficulties to which research is prone when evaluating CDM projects for alleged sustainable development contributions. Section 4 brings together and analyses available empirical research on the pro-poor benefits the CDM purportedly delivers to host country communities, concluding that the CDM has failed to deliver poverty alleviation. Therefore, without attempting to be exhaustive, we suggest policy reforms that aim to redirect the CDM to those most in need of assistance.     

Towards a sustainable energy future—exploring current barriers and potential solutions in Thailand

Renewable energy is considered an indispensable basis of sustainable energy systems as electricity generation from renewable sources results in low emissions of greenhouse gases compared to fossil fuel based electricity and contributes to sustainable development. However, effective strategies and conducive institutional settings are needed for advancement of such clean electricity systems. Although Thailand, as a nation, has a huge potential for renewable energy utilization, its total amount of electricity generation from renewables is relatively small and could be enlarged substantially. Lack of policy mechanisms, institutional development and financing exist as major barriers for Thailand in this regard. Investigation of the nation’s current energy strategy implementation shows that relevant energy and development policies are at different stages of implementation and institutional settings are continuously evolving. This paper argues that further significant efforts could be made towards advancement of renewable electricity and thus achievement of energy sustainability in Thailand. Resource planning, effective policy and institutions, focussed planning for energy sustainability and implementation of the Clean Development Mechanism (CDM) under the Kyoto Protocol could facilitate further advancement of renewables for the nation.     

Sustainability indicators for clean development mechanism projects in Vietnam

The Clean Development Mechanism (CDM) is one of the flexible instruments of the Kyoto Protocol designed to combat climate change so as to bring advantages to developing countries and developed countries alike. Indeed, CDM projects have a two-fold objective: to offset greenhouse gas emissions and to contribute to sustainable development in the host country. However in many cases, the latter objective appears to be marginalized. This is at least partly due to the difficulties surrounding the definition and the measurement of sustainability, in particular in a developing country context. To assess CDM projects’ contribution to sustainable development in the host country, scholars and practitioners need adapted indicator sets. A set of indicators were developed by way of an iterative Delphi approach amongst selected Vietnamese experts. The Delphi approach allowed a systematic collection of the experts’ judgements on the sustainability indicators through a set of sequentially applied questionnaires, interspersed with feedback from earlier responses. This exercise resulted in the selection of a set of 36 indicators, which emphasise economic efficiency, public health and pollution issues. The exercise yielded a locally supported and context-specific set of sustainability indicators that will allow Vietnamese decision-makers to enhance the sustainability of the approved CDM projects. In the future this set should be continually improved through real-life application and further participation from local stakeholders. This study is a first step in a long-term process towards developing an adapted toolkit for sustainability assessment of CDM projects in Vietnam.     

The clean development mechanism—catalyst for wide spread deployment of renewable energy technologies? or misnomer?

The (usually not professed) truth is that we are not destroying the planet due to lack of technology, but due to lack of application of technology. Indeed, opportunities exist for renewable energy technologies’ diffusion under the new climate change regime as they contribute to global sustainability through GHG mitigation and, they conform to national priorities by leading to the enhancement of local economic activity, capacities and infrastructure. The clean development mechanism (CDM), although is considered one of the global policy tools to contribute to sustainable development and technology transfer, has recently been criticised for its unequal distribution of projects across countries and for insufficiently being embedded in developing countries’ national energy context. In the above framework, this article presents the ENTTRANS approach, five indicative renewable energy technologies, and insights about a more effective application of CDM, which may be part of the international process striving towards sustainable development.     

生态旅游项目的可持续设计

本文基于我国目前生态旅游项目开发存在的普遍问题,从可持续旅游的观点提出了生态旅游项目开发的四个基本准则,同时讨论分析了生态旅游项目可持续设计应遵循的方法和主要内容。     

Economic analysis of biogas and compost projects in a palm oil mill with clean development mechanism in Malaysia

This article is a case study to compare the economic viabilities of biogas generation and compost projects in a palm oil mill in Malaysia with and without clean development mechanism (CDM). Biogas is captured from anaerobic ponds or digester tanks treating palm oil mill effluent (POME) and converted to green renewable electricity for grid connection, while compost is produced from the shredded empty fruit bunch and raw untreated POME. The both technologies were compared by considering the changes of the materials flow and energy balances. A palm oil mill with a capacity of 54?t fresh fruit bunch per hour has the potential to produce either 6.9?GWh of electricity from biogas or fertilizer equivalent to 488?t of nitrogen, 76?t of phosphorus and 1,065?t of potassium per year. The economic analysis for 10?years project term analysis indicated that CDM gave a significant impact and ensured economic viability for both projects with 25?% of internal rate of return (IRR), RM 12.39 million of net present value (NPV) and 3.5?years of payback period (PBP) for biogas project, whereas 31?% of IRR, RM 10.87 million of NPV and 2.9?years of PBP for compost project, respectively. In addition, sensitivity analysis indicated that the profitability of both projects will vary depending on the economic situation, such as electricity price which is based on the government policy, whereas compost price that depend on fertilizer market price with 43?% NPV change in 20?% range of fertilizer value.     

中国可再生能源政策演化、效果评估与未来展望

发展可再生能源已成为中国能源转型及减缓气候变化的关键途径。2006年《可再生能源法》实施至今,中国可再生发展取得举世瞩目成绩。然而可再生能源在中国整个能源结构中的占比仍然偏低,其未来可持续发展仍面临挑战,如可再生能源发展资金缺口持续扩大,可再生能源电力消纳仍然面临一定障碍。在未来新的发展背景下,有必要对中国可再生能源政策进行系统的评估和总结,进一步探讨未来可再生能源政策的优化方案。本文首先对中国2005—2019年可再生能源政策的发展历程及演化路径进行总结梳理,基于不同时期的发展特点及面临的主要矛盾将中国可再生能源政策历程划分为四个阶段;然后在综述相关研究基础上,对中国可再生能源政策的实施效果进行评估,包括政策有效性、政策成本、技术进步等。结果表明,中国过去十年的可再生能源政策对促进可再生能源快速发展是积极有效的,而促进可再生能源发展的政策成本仍然有进一步下降的空间;另外,虽然中国可再生能源发电成本下降显著,然而基于历史经验的技术进步率仍然不足以支撑实现中国2020年平价上网的目标,未来需要进一步推动可再生能源技术的进步和发电成本的下降。结合当前及未来中国可再生能源发展所处阶段的特点及面临挑战,我们提出进一步完善中国可再生能源政策以促进可再生能源持续稳定发展的政策建议,一是完善可再生能源绿色电力证书交易制度,增强可再生能源发展的内生激励并降低政策实施成本;二是建立储能技术市场机制,为减少弃电以及推动可再生能源消纳提供政策支持;三是推进碳金融体系建设,为可再生能源发展提供新的融资来源并降低发电成本。     

Quantitative Appraisement on Ecological Cawing Capacity in Coastal Rapid Developing Region of Hainan Province

The ecological carrying capacity, an important indica-tor to evaluate the sustainable development of the ecosystem, means the potential ability of the natural ecosystem to carry so-cioeconomic development while the ecosystem is healthy. It is limited by the carrying capacity of natural resources and environ-merit and the elasticity of the ecosystem. It will be greatly signifi-cant to study the ecological carrying capacity of Hainan Province, the first ecological province admitted by the State Environmental Protection Administration in China. Not only is the natural eco-system reflected, but also the effects of human activities are em-phasized by integrating the ecosystem health analysis into the ecological carrying capacity research. The research results, using the Factor Analysis tools of software SPSS, indicate that the eco-logical carrying capacity of Hainan Province fluctuated obviously from 1996 to 2005. The level of the ecological carrying capacity of Hainan Province was relatively high in 1996, and reached into trough from 1997 to 1999. It has steadily ascended to be above the middle level since the 21st century. The results also show that policy factors, especially the implementation of the 'Ecological Province' strategy, were important driving forces to influence the ecological carrying capacity. With the population rapidly increas-ing, the land and water resources per capita have decreased quickly. The amount of the ecological carrying capacity was pro-rooted remarkably by socioeconomic development especially economic growth and technology applications. All of these will provide useful suggestions to establish and enact regional devel-opment policies, especially for protecting and reconstructing the ecology and environment of Hainan Province.