The Commission today published the results of a study assessing the merits and shortcomings of the current Clean Development Mechanism, which allows companies and industrialised countries to offset emissions by investing in emission reduction projects in developing countries. This study also explores options for UN or EU action to further improve the mechanism.
The study includes a critical assessment of the government structures and the project-based additionality rules, and explores the use of alternative, standardised approaches to setting baselines and assessing additionality. It also looks at new sectoral market mechanisms as an alternative to the CDM, and evaluates the approval processes used for projects under Joint Implementation track 1.
Director-General for Climate Action Jos Delbeke has made the following statement: "While the Clean Development Mechanism carries great promise in delivering cost-effective greenhouse gas emission reductions in developing countries, it has also given rise to criticisms and concerns about some project categories.
Despite some progress made, further reforms of the CDM are necessary. I therefore warmly welcome the decision by the UNFCCC and the CDM Executive Board to initiate a high-level policy dialogue about the future of the CDM. The study on various aspects of the CDM, which we present today, can provide input to these discussions.
Depending on the outcome of this policy dialogue, we may consider further action in Europe to potentially restrict the use of certain project categories, like we did earlier this year for industrial gas credits."