How can the current CDM deliver sustainable development?

Abstract

The two aims of the clean development mechanism (CDM) were to reduce greenhouse gases cost effectively and contribute to sustainable development (SD) in developing countries. So far, however, SD components of the mechanism have been questionable. In this opinion article, we argue for a more theoretically informed engagement with the CDM that could be empowered through the better provision of transparent and clear information in the project implementation processes. Drawing on our work in Latin America, we concur with other authors that the CDM as it stands does not 'deliver' SD, but that improved information and a research agenda that focuses on the multi-level political economy of projectbased CDM could assist in the mechanism delivering on multiple forms of SD in local contexts. 

Unpacking the Black Box of Technology Distribution, Development Potential and Carbon Markets Benefits

“…The likelihood of unintended negative consequences resulting from a development intervention have been well documented in the general development literature (Ferguson 1994;Scott 1998) and in specific assessments of carbon credit projects. However, existing studies tend to focus on the theoretical merits and pitfalls of market-based approaches either by providing a global assessment of the market (Abadie et al 2012;Kossoy and Guigon 2012;Climate Policy Initiative 2014;Climate Funds Update 2016) or by utilizing illustrative case studies to bolster a position on the carbon market's merits in general (Haya 2007;Bumpus and Cole 2010) or that achieving climate and development co-benefits is context dependent (Simon et al 2012). Rather than condemn or condone carbon markets as a concept, there is a need to uncover causal mechanisms that can explain variations in development outcomes between carbon project types and designs.…”

A two-track CDM: improved incentives for sustainable development and offset production

“…The authors also find that a strengthening of CDM rules to improve environmental integrity led to lower investments in environmentally friendly technologies due to increased uncertainty. Overall, the literature in this field questions the ability of the CDM mechanism to deliver significant contributions to sustainable development (see for example Subbarao and Lloyd 2011;Bumpus and Cole 2010;Liverman 2009;Ellis et al 2007). Haya (2009) even argues that SD contributions are in some cases negative, as the CDM mechanism can improve the profitability of projects that have negative impacts in terms of environment or social aspects.…”

Carbon credits for cookstoves: Trade-offs in climate and health benefits

“…The development benefits of a CDM project do not have the same type of certification process and as long as a project is deemed to contribute to development by the Designated National Authority within the project country, it qualifies for CDM credits. Partially as a result of this difference in approach for carbon credits and development benefits, the CDM has been criticized as not achieving its first goal, sustainable development, and instead being driven mainly by the goal to reduce emissions (For a review of the literature: Olsen 2007; Also see Cosbey et al 2005, Figueres 2006, Pearson 2006, Sterk and Wittneben 2006, Bumpus and Cole 2010. Critics argue that using monetary incentives for the implementation of CDM projects can result in the easiest credits being reached first, which may not achieve sustainable development goals (Cosbey et al 2005, Figueres 2006, Pearson 2006, Sterk and Wittneben 2006, Olsen 2007, Bumpus and Cole 2010.…”