by Surya Karki
According to Annual Report of the Executive Board of the Clean Development Mechanism (CDM) to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol, it has come through another difficult year. The main challenge facing the CDM remains the low level of demand for the certified emission reductions produced by CDM registered project activities and programmes of activities, due ultimately to Parties’ level of ambition to reduce greenhouse gas emissions. And as there wasn’t a mechanism to address the overflow and low demand of carbon credits, the overwhelming supply of CER units has driven the demand and carbon prices down.
The report also states that the number of CDM projects carried out has dropped drastically in comparison to 2005 levels. Since its establishment, the CDM has 7300 projects registered in 94 countries, making it the only mechanism to have implemented projects in several countries. Among the 7300 CDM projects, many have been implemented in countries that already attract the lion’s share of foreign direct investment (FDI), like China and India among others.
While the “C” in CDM stands for “Clean,” the definition of this word is so vague that even “clean coal” projects can be part of it. The astonishing fact is that most CDM credits are made up of “clean coal” project credits. Thus, through this mechanism there is no actual CO2 emission reduction. The “reduction” in CO2 gases from CDM projects, which are counted as credits towards mitigation commitment for the implementing country, is a demonstration of false mitigation commitments by Annex I parties. Read more…