Privatizing Environmental Resources: The Need for Supervision of Clean Development Mechanism Contracts?

Abstract

This article argues that a current trend in global sustainable development governance is actively to engage the private sector in participating in the process of implementing global and national policy goals. This trend is based on the notion that the private sector has the ideas, technologies and resources at its disposal that can be channelled to addressing global environmental challenges. This new trend does not, however, take into account the past and present implications of private sector investment in fields such as mining and forestry. Nor does it closely examine how private sector rules will subsequently infiltrate and govern environmental management. On the basis of an examination of current policy developments and contracts in the area of environmental management and their implications for developing countries, this article argues in favour of establishing an authority that oversees the legitimacy and legality of these new contracts, especially in, but not limited to, the area of climate change.