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.

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