Clean Development Mechanism

Definition

The Clean Development Mechanism (CDM) is a market-based approach established under the Kyoto Protocol that allows developed countries to invest in greenhouse gas emission reduction projects in developing countries as a way to meet their own emission reduction targets. This mechanism aims to promote sustainable development while providing financial incentives for emission reduction efforts in poorer nations.

5 Must Know Facts For Your Next Test

1. The CDM was established under Article 12 of the Kyoto Protocol, which was adopted in 1997 and came into force in 2005.
2. Developed countries can earn certified emission reductions (CERs) through successful investment in projects that reduce emissions in developing countries.
3. The CDM helps promote sustainable development by channeling investments into projects that not only reduce emissions but also contribute to economic growth and poverty alleviation.
4. Projects under the CDM must meet specific criteria and undergo a rigorous validation process before they can be registered and earn CERs.
5. The mechanism has facilitated thousands of projects worldwide, including renewable energy initiatives, methane capture from landfills, and reforestation programs.

Review Questions

• How does the Clean Development Mechanism facilitate collaboration between developed and developing countries in addressing climate change?
  • The Clean Development Mechanism promotes collaboration by allowing developed countries to invest in emission reduction projects in developing nations, which helps them meet their own climate targets. This arrangement creates a financial incentive for developing countries to pursue sustainable development initiatives while benefiting from foreign investment. As a result, both parties can address climate change more effectively through shared responsibilities and resources.
• Discuss the potential challenges and criticisms associated with the implementation of the Clean Development Mechanism.
  • One major challenge of the CDM is ensuring that projects deliver real, measurable, and additional emission reductions beyond what would have occurred without the project. Critics argue that some projects may not provide sufficient environmental benefits or may prioritize profit over genuine sustainability. Additionally, there are concerns about the equitable distribution of benefits and whether local communities truly gain from these investments, leading to calls for improved governance and accountability.
• Evaluate the effectiveness of the Clean Development Mechanism in achieving its goals and its impact on global climate policy.
  • The effectiveness of the Clean Development Mechanism can be assessed by analyzing its success in generating certified emission reductions and promoting sustainable development. While it has facilitated numerous projects and mobilized significant investment, critics argue that it has fallen short of delivering substantial global emissions reductions relative to its potential. Furthermore, its role within the broader context of international climate agreements is evolving, especially with emerging frameworks like the Paris Agreement, which may shift focus towards more direct commitments by nations rather than market mechanisms like the CDM.

Related terms

Kyoto Protocol:

An international treaty that commits its parties to reduce greenhouse gas emissions, based on the premise that global warming exists and human-made CO2 emissions have caused it.

Carbon Credits: Permits that allow the holder to emit a specific amount of carbon dioxide or other greenhouse gases; one credit typically allows for the emission of one ton of CO2.

Emission Reduction Projects: Initiatives implemented to reduce the emission of greenhouse gases, which can include renewable energy projects, energy efficiency improvements, and reforestation efforts.