Do solar photovoltaic clean development mechanism projects contribute to sustainable development in Latin America? Prospects for the Paris Agreement

Abstract

Clean Development Mechanism (CDM) projects must include intended contributions to sustainable development in their scope, in addition to promoting the reduction of greenhouse gas emissions (GHG). Previous studies have identified expected co-benefits in CDM projects, nevertheless, they have not focused on solar photovoltaic energy. Although there is high solar irradiation in Latin American countries, there were only 25 registered solar photovoltaic CDM projects. In this study, we examine the intended co-benefits for sustainable development of solar photovoltaic CDM projects in Latin American countries and investigate the climate and energy policies that may have led to the low number of registrations for these projects in the region. The analysis was performed using the T-Lab software program through its Dictionary-Based Classification tool applied to the outlined indicators and criteria. The results indicate gaps in project contributions, for example, the technology transfer was mentioned as equipment and knowledge importation from other countries, which does not imply the development of the local solar industry; community engagement and equal gender opportunities continue to remain challenges, water quality and conservation of biodiversity issues were underscored, and the reducing the overuse competition between cropland and solar panel installation was overlooked. CDM was important to promote diversification in electricity generation in most Latin American countries, but not sufficient to improve the solar photovoltaic market. The main barriers to implementing these projects have been regulation and lack of incentives. The national energy and climate policies in the region should set guidelines/standards for assessing the co-benefits for the sustainable development of GHG reduction projects, aligned with the new carbon market mechanism rules and the UN-Agenda 2030.