CLEAN DEVELOPMENT MECHANISM
OF THE
KYOTO PROTOCOL
Group J - Matt Bastyan, Simon Crook, Joe Payne,
Sarah Teverson, Michael Treiber, Paula Urry
Introduction
• Definition of the CDM
• Section A: Types of projects (renewable,
buildings & afforestation/reforestation)
• Section B: Standards & definitions
• Conclusion
CLEAN DEVELOPMENT MECHANISM
DEFINITION ‘The purpose of the clean
development mechanism shall be to assist
Parties not included in Annex I in achieving
sustainable development and in contributing to
the ultimate objective of the Convention, and to
assist Parties including Annex I in achieving
compliance with their quantified emission
limitation and reduction commitments […].’
(UNFCCC, 1998)
Section A: Individual sectors
0.50%
1.00%
Afforestation/Reforestation
Buildings & demand-side EE
Renewables
Renewables
35.00%
HFCs, PFCs & N2O reduction
CH4 reduction & Cement &
Coal mine/bed
Supply-side EE
Fuel switch
Transport
Project Mix of CDM (UNEP Risoe, 2010)
Afforestation & Reforestation
• 15% of global
anthropogenic carbon
emissions are from
deforestation
• “forest” within CDM
A/R Conclusions
• Barriers within A/R sector:
– CDM policies and guidelines are unclear
– Community based projects often over looked
– Economic incentives favour profitable projects
– Maximum crediting period of 21 years is not enough
for A/R projects
– Carbon sequestration calculations ignore parts of
the forest carbon cycle
Renewable
• Including:
– Hydropower
– Geothermal
– Wind power
Renewable Conclusions
• More projects under CDM than other sectors
– Majority are hydropower (27%)
• Negatives associated with renewable sector:
– Projects can cause large scale relocation
– Financial investment is limited
Building sector
• 25-30% energy related CO2
emissions globally
• Low costs technologies and
measures allow great
potential for emissions
reductions
• Few projects approved,
therefore, emissions
curbing is limited
Building Sector Conclusions
• Barriers within buildings sector:
– Many small emissions sources
– Technology specific measures
– Lack of baseline and monitoring methodologies
– Difficulty proving project additionality
– Economic incentive too weak
Section B:
Standards & definitions
Additionality
• Emissions ‘[...] by sources are reduced below
those that would have occurred in the absence
of the registered CDM project activity.’
(UNFCCC, 2002)
• Greenhouse gas emissions from the projects
are lower than if the project did not take place
(Mendis & Openshaw, 2004)
No. rejected projects
Reasons for rejection
45
40
35
30
25
20
15
10
5
0
UNEP Risoe, 2010
Sustainable development
• Underlining principle of CDM
• ‘[…] meeting the needs of the
present without
compromising the ability of
future generations to meet
their own needs.’ (UN, 1987)
• Host countries define SD
criteria (Marrakesh Accord, 2001)
Limitations for host countries
• Multiple definitions of key CDM requirements
• Additionality favours existing technology, it is
a barrier to innovation
• Competition to attract investment driving
down sustainable development standards
– “Race to the bottom” (Sutter & Parreno, 2007)
Opportunities for financial institutions
• Major traders are speculators (Chan, 2009)
• Potential cost savings by using CERs instead of
EUAs
• Oligopoly of DOEs
€ 14.00
– e.g. TUV SUD
€ 13.00
• ‘green-washing’
€ 12.00
– e.g. BP, Shell,
€ 11.00
€ 10.00
CER €t-1 (15 Mar-26 Apr 2010)
(Point Carbon, 2010)
Conclusion
• Projected reduction of 1,035mt CO2e
by 2012 through CDM
But…
• Untapped potential of CDM
• CDM aims are overlooked
• Corporate gain
not emission reduction
not sustainable development
Questions?
References
Chan, M. (2009) Subprime carbon? Re-thinking the world’s largest new derivatives market, Friends of
the Earth, USA
Point Carbon. (2010). Carbon Market Daily. Retrieved April 26, 2010, from Point Carbon:
http://www.pointcarbon.com/news/cmd/1.1439103
Sutter, C. & Parreno, J. (2007) Does the current Clean Development Mechanism (CDM) deliver its
sustainable development claim? An analysis of officially registered CDM projects, Climatic Change,
Vol. 84, pp. 75-90
UN (1987) Report of the World Commission on Environment and Development, General Assembly
Resolution 42/187, 11.12.1987 (Access date: 19.4.2010)
UNEP Risoe. (2010). CDM Pipeline Analysis and Database, March 1st 2010. Retrieved April 11, 2010,
from UNEP Risoe Centre: Energy, Climate and Sustainable Development: http://cdm pipeline.org/
UNFCCC. (1998). Kyoto Protocol - Article 12 . Retrieved April 2010, from United Nations Framework
Convention on Climate Change: http://unfccc.int/resource/docs/convkp/kpeng.pdf#page=12
UNFCCC. (2001). The Marrakesh Accords. Retrieved April 2010, from United Nations Framework
Convention on Climate Change: http://unfccc.int/cop7/documents/accords_draft.pdf
UNFCCC (2002) Report of the Conference of the parties on its seventh session, held at Marrakesh from
29 October to 10 November 2001 – Part two: Action taken by the conference of the parties:
http://unfccc/cp/2001/13/Add.2