How Could Developing Countries Participate in Climate Change Prevention: The Clean Develoment Mechanism and Beyond

Abstract

An Agreement on CDM rules in important both for industrialised and developing countries. As a flexibility mechanism, it will allow industrialised countries to benefit from low cost emission reductions but the CDM, as a main goal, should stimulate a more sustainable economic development in DCs. The CDM is the sole instrument, with GEF, proposed for DCs' participation in climate change prevention. This situation satisfies a majority of DCs, but CDM may not offer sufficient perspectives for some countries with rapid industrialisation given the huge economic stakes linked to the creation of a carbon credits market between Annex I countries. The operationality of the CDM is not yet established and important questions, such as environmental additionality, are still unresolved. Here we first examine the rules in order to validate project additionality and its possible consequences on the effectiveness and the scope of the mechanism. The different reactions of major DCs groups on the structure of the mechanism will then be analysed. This will lead us to examine the possibilities to enlarge participation of DCs in climate change prevention according to the apparent wish of semi-industrialised countries.