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.     

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。     

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.     

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.     

China''''s CDM Policies and Their Development Implications:Major Concerns for CDM Implementation

Most CDM (Clean Development Mechanism) opportunities exist in some large industrializing developing countries. For instance, China is estimated to take 48% of the world potential for CDM project activities. In reality, however, the share by China over the CDM projects registered and CDM projects in the pipeline is less than 10% as of Auguest 2005. This paper will examine the reasons behind, as reflected in China's CDM policies. Further investigation will be made into the use of these policies to boost the country's sustainable development, the sustainable development implications and effects of these policies. In addition, it is noted that incompatibility of some other Chinese laws and policies can be responsible for the low level and slow pace of CDM implementation in China and some suggestions are offered for promoting CDM project activities in China. There also exist barriers at the international level that impedes implementation of CDM project activities. A conclusion is drawn that CDM policies in a developing country like China aim mainly at promotion of sustainable development and to a lesser extent the generation of CERs.     

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 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.     

Creating a “values” chain for sustainable development in developing nations: where Maslow meets Porter

This paper serves to establish an appropriate framework for prioritizing policy related to sustainable development by combining elements of Maslow’s hierarchy of needs theory with Porter’s value chain theory. An appropriate balance of social sustainability, economic sustainability, and environmental sustainability is defined so that policy makers may be provided some direction in regard to appropriate and socially just resource priorities. The model that forms the basis for this framework is then tested through hierarchal regression analysis using data from 45 developing countries. Using these results, the values chain framework has been refined to consider that self-actualization and sustainable development are one and the same and that the satisfaction of society’s physiological needs through the prioritization of policies related to environmental sustainability is the principle motivator for moving on to the attainment of higher-order needs such as increased levels of sustainable development.     

Technology improvements and value changes for sustainable happiness: a cross-development analytical model

This paper develops an analytical model to calculate the amount by which individuals are expected to modify their values (the relationship between lifestyle and happiness, as measured by subjective well-being, SWB) and to adopt innovative technologies (to increase the sustainability of production and consumption, measured by the ecological footprint, EF) to allow current and future generations to achieve sustainable happiness (the pursuit of happiness that does not exploit other people, the environment, or future generations). The paper also examines the dependence of these changes on an individual’s concern for future generations and on their country’s current state of economic development. It is shown that individuals in better-off developed countries and individuals in worse-off developing countries can achieve sustainability with a reasonable level of value change (0–30 %) and a feasible degree of technological innovation (10–40 %), respectively. In contrast, individuals in better-off developing countries and individuals in worse-off developed countries must rely to an impractical degree of technological innovation (50–70 %) and to an unreasonable level of value change (40–70 %), respectively. Finally, individuals in developing countries differ from individuals in developed countries in terms of their potential to achieve sustainable happiness, by achieving sustainability at a low SWB (about 10 % of its maximum) and a high SWB (about 80 % of its maximum), respectively.     

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.     

Evaluation of stakeholder participation in monitoring regional sustainable development

This paper presents a theoretical framework that can be used to discuss the question of how context, time and different participatory process designs influence the results of participatory monitoring projects in terms of concrete outputs (such as sustainability indicators) and the more intangible social outcomes (such as learning and stakeholder relations). We will discuss and compare four different cases of participatory monitoring of provincial sustainable development in the Netherlands. The results show sustainability issues selected by the stakeholders reflect the socio-economic and ecological structural characteristics of their region. In a different context, stakeholders not only assign different weights to the same set of issues, but more importantly they select a completely different set of regional aims altogether. Since these regional structural characteristics only change slowly over time, the influence of time on stakeholder preferences is shown to be only of minor importance. However, the dissipation of learning effects is shown to be a fundamental challenge for the cyclical nature of participatory monitoring, especially when its goal is shared agenda building. Another important conclusion is that, in the design of participatory processes, more attention should be devoted to providing stakeholders with the opportunity to comment on an ‘intermediate’ product.     

Urbanization and sustainability: challenges and strategies for sustainable urban development in Bangladesh

Like other developing countries, urbanization in Bangladesh is a growing phenomenon, which is steady in nature but fretfully affects urban sustainability in the wake of lacking in good governance. Despite urban authorities are concerned about this issue, they often fail to address the problems due to the fact of uncontrollable and unpredictable rural to urban migration, and negligence of urban poor’s sustainable living and access to basic services. Virtually the rural poverty problem has been transposed to urban areas, particularly in Dhaka City, Bangladesh. Inadequacy of infrastructural services, basic amenities and environmental goods; environmental degradation; traffic jam and accidents; violence and socioeconomic insecurity are the major challenges which are created through rapid urbanization. This paper provides a general understanding of urbanization in Bangladesh and tries to embrace related sustainability issues and challenges hindrance to sustainable urban development in Dhaka city. In addition, it presents a brief case study of water supply in Dhaka city which introduces an issue of ‘system hijack’. The paper concludes providing some strategies that might be helpful to the policy makers in formulating development policies for sustainable urban services.     

When experts disagree: the need to rethink indicator selection for assessing sustainability of agriculture

Sustainability indicators are well recognized for their potential to assess and monitor sustainable development of agricultural systems. A large number of indicators are proposed in various sustainability assessment frameworks, which raises concerns regarding the validity of approaches, usefulness and trust in such frameworks. Selecting indicators requires transparent and well-defined procedures to ensure the relevance and validity of sustainability assessments. The objective of this study, therefore, was to determine whether experts agree on which criteria are most important in the selection of indicators and indicator sets for robust sustainability assessments. Two groups of experts (Temperate Agriculture Research Network and New Zealand Sustainability Dashboard) were asked to rank the relative importance of eleven criteria for selecting individual indicators and of nine criteria for balancing a collective set of indicators. Both ranking surveys reveal a startling lack of consensus amongst experts about how best to measure agricultural sustainability and call for a radical rethink about how complementary approaches to sustainability assessments are used alongside each other to ensure a plurality of views and maximum collaboration and trust amongst stakeholders. To improve the transparency, relevance and robustness of sustainable assessments, the context of the sustainability assessment, including prioritizations of selection criteria for indicator selection, must be accounted for. A collaborative design process will enhance the acceptance of diverse values and prioritizations embedded in sustainability assessments. The process by which indicators and sustainability frameworks are established may be a much more important determinant of their success than the final shape of the assessment tools. Such an emphasis on process would make assessments more transparent, transformative and enduring.     

Social cost of environmental pollution and application of counter measures through clean development mechanism: in the context of developing countries

The developing countries i.e., the non-Annex-I countries (parties to the Kyoto Protocol but not responsible to any reduction target yet) in the Kyoto Protocol whose economies are in transition are also allowed to reduce GHG emissions. Among these, the countries that have accepted the Kyoto Protocol may be benefited from CDM projects to promote sustainable development. The developed countries i.e., the Annex-I countries (that have signed the Kyoto Protocol & are responsible to have specific GHG emission reduction target) or the investing countries, in return, have privilege to purchase CER credits (in units equivalent to one tonne of CO₂ gas emission reduction) to meet the emission target as specified in the Kyoto Protocol. The key step in understanding about CDM is to grasp the concept of “baseline” and “additionality”. The “Baseline” is the emissions level that would have existed if a CDM project had not happened. The feature of an approved CDM project is that the planned reductions would not occur without the additional incentive provided by emission reduction credits; this concept is known as “Additionality”. According to environmental additionality concept, baseline emission minus project emission is equal to emissions reduction. “Investment Additionality,” ultimately rejected during negotiation of the “Marrakech Accords” and “Financial Additionality,” are the two important concepts. The concept of trading of CER matches to the idea of Pigovian tax (equal to the negative externality and which is considered one of the “traditional” means of bringing a modicum of market forces) in Economics, making pollution more costly to the polluter, as the polluters have negative cost since they save money by polluting; hence, there are supposed negative externalities associated with the market activity. Economic theory predicts that in an economy where the cost of reaching mutual agreement between parties is high and where pollution is diffuse, Pigovian tax will be an efficient way to promote the public interest and will lead to an improvement of the quality of life measured by the Genuine Progress Indicator and other human economic indicators, as well as higher gross domestic product growth. We can seek a level of pollution such that the marginal savings (MS) to one polluting unit from pollution (−MC) is equal to marginal damage (MD) from pollution over the entire population, since pollution is a public bad i.e., MS (x*) = ∑MD_i (x*) where ∑D_i (x) is the total damage. Though the responsibility of reduction in emission does not lie on the non-Annex-I countries, still effort of maintaining global emission balance can be expected equally from developed and developing countries. The responsibilities of Kyoto Protocol are (a) to reduce global GHG emissions, (b) to bring about sustainable development in the developing countries lie on above two groups since its effect on February 16, 2005. Different polluters have different costs of pollution control. The least costly way of controlling pollution from various sources that reflects different costs of pollution control making the set of environmental regulations to achieve the emission target at the lowest cost makes the regulation cost-effective. Though efficiency is not attainable for many regulations, cost-effectiveness is attainable.     

Environmental sustainability practices in South Asian university campuses: an exploratory study on Bangladeshi universities

Environmental sustainability practices in universities can play an important role in helping society form a sustainable future. In this study, the roles that Bangladeshi universities play in terms of sustainability practices on their campuses are scrutinized, as well as the challenges these universities face. The existing research on campus sustainability practices in Asia is reviewed, and a new exploratory study is put forth on environmental sustainability practices in the higher education institutions of a developing country—Bangladesh. The Campus Sustainability Assessment Framework used in Canadian universities was taken as basis for determining potential environmental management indicators. Results show that environmental management practices (i.e., environmental education, research, governance and operations) are present only to a very limited extent in higher education institutions in Bangladesh.     

Transdisciplinary research in support of land and water management in China and Southeast Asia: evaluation of four research projects

Transdisciplinary research (TDR) aims at identifying implementable solutions to difficult sustainability problems and at fostering social learning. It requires a well-managed collaboration among multidisciplinary scientists and multisectoral stakeholders. Performing TDR is challenging, particularly for foreign researchers working in countries with different institutional and socio-cultural conditions. There is a need to synthesize and share experience among researchers as well as practitioners regarding how TDR can be conducted under specific contexts. In this paper, we aim to evaluate and synthesize our unique experience in conducting TDR projects in Asia. We applied guiding principles of TDR to conduct a formative evaluation of four consortium projects on sustainable land and water management in China, the Philippines, and Vietnam. In all projects, local political conditions restricted the set of stakeholders that could be involved in the research processes. The set of involved stakeholders was also affected by the fact that stakeholders in most cases only participate if they belong to the personal network of the project leaders. Language barriers hampered effective communication between foreign researchers and stakeholders in all projects and thus knowledge integration. The TDR approach and its specific methods were adapted to respond to the specific cultural, social, and political conditions in the research areas, also with the aim to promote trust and interest of the stakeholders throughout the project. Additionally, various measures were implemented to promote collaboration among disciplinary scientists. Based on lessons learned, we provide specific recommendations for the design and implementation of TDR projects in particular in Asia.     

可持续发展定量研究的几种新方法评介

可持续发展衡量的指标体系及其评价方法和模型研究是可持续发展研究的重要内容,它可以为政府的可持续发展决策提供重要的科学依据和优先考虑的问题,还可以为公众提供可持续发展的有效信息。在分析国际上和国内衡量可持续发展的指标体系的基础上,本文介绍了９０年代中期以来国际上提出的几种新的、有代表性的基于货币化估值的指标体系和以具体生物物理衡量的指标体系,并系统分析比较了它们的优特点。     

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     

Water Bodies Protection Index for assessing the sustainability status of lakes under the influence of urbanization: a case study of south Chennai, India

Vulnerability of water resources to degradation is one of the critical issues facing developing countries. Changes in population and land use associated with urbanization may alter social interdependence of water bodies in the vicinity of urban and periurban areas thereby affecting their sustainability. Preservation and proper management of lakes are urgently needed to ensure that these freshwater ecosystems continue to deliver their services to the people in the changing scenarios resulting from urbanization. In this paper, we make use of indicators, a powerful tool in decision making, and propose Water Bodies Protection Index (WBPI), which can serve as monitoring cum ranking tool to prioritize conservation efforts for periurban water bodies. Water quality, biological diversity, encroachment of the lakes, role played by the local community in lake management and preservation, and implementation of existing Acts for protection of water resources by government agencies are the five factors chosen for formulating this index. The data and information for this were obtained through socio-ecological study of six water bodies situated in the urban to rural gradient at the southern fringe of Chennai city in south India. Weightages were assigned to the above factors based on a Delphi study. A simple aggregation of weighted factors yields the index that classifies the protection status from poor (<2.5) to sustainable (>9). Application of the WBPI to the study lakes and comparing it with an urbanization index from the literature for the locations of the study lakes provided satisfactory classification and correlation, respectively. The WBPI is expected to help assess many such water bodies elsewhere to set targets for their revival and preservation.