CDM and its development impact: the role and behaviour of the corporate sector in CDM projects in Indonesia

Abstract

This chapter discusses the role and behaviour of the corporate sector in Clean Development Mechanism (CDM) projects by examining a case from Indonesia. The chapter reviews: the role of the private sector in the CDM process and the manner in which this has influenced the types of CDM projects; the benefits accrued to Indonesia from these projects; and the wider implications for sustainable development through the CDM scheme. It identifies several types of drivers for private sector involvement in CDM: viz. CSR, international obligations and profit-making. By analysing ongoing CDM projects in Indonesia, the issue of realisation of development impact through CDM is examined. Finally the chapter presents a series of recommendations for the country to encourage the private sector to play a greater role in the CDM scheme.