The Clean Development Mechanism as a Means to Assess the Kyoto Protocol in Colombia

Abstract

Funding Mechanisms to develop infrastructure projects should be both profitable and sustainable. For this reason, the Clean Development Mechanism must have a pivotal role for increasing the offer of sustainable projects as a means to assess the Kyoto Protocol's efficacy through the diagnosis of projects developed in Colombia. In this paper, we analyzed 129 projects that received financing through carbon credits in their first accreditation period (between 2005 and 2015) as an initiative to mitigate climate change and increase of the power offer. We concluded that the hydropower projects and more specifically, the Antioquia region’s hydro projects have obtained major sustainable financing. This is largely due to the great capacity for generating power and special geographical conditions, which encourage the development of electric projects. In addition, Colombia should also improve the synergy among the development of infrastructure projects, the Clean Development Mechanism, and the Kyoto Protocol. This will allow to develop new sustainable projects based on carbon economy, considering impacts of climate change and the integrated assessment of climate change. This paper is expected to contribute to encouraging capital markets and private participation for developing sustainable projects in the different sectors, particularly the social, where private investors need to have more financial products. This will allow to mitigate climate change and increase the bid of securities in the Colombian market capital.