The Clean Development Mechanism in Africa – Potential and Limitations

Many experts and scholars have reflected on the inequitable distribution of CDM projects and have come up with both analyses of the situation as well as with suggestions for possible solutions. This paper takes stock of the existing material and tries to evaluate the suggestions and their possible effects. The underlying hypothesis is that a market-based instrument like the CDM might not be suited to achieving a balanced distribution of projects, and that additional measures may have to be considered to achieve a balanced clean development in every part of the world. In a first step, we look at the current situation of the CDM with regard to the distribution of projects. We then make an attempt to assess Africa’s CDM potential and correlate it with the numbers of inhabitants and the region’s level of CO2 emissions. In the next chapter, we sum up the different barriers to an equitable distribution of CDM projects. We then juxtapose the barriers and the solutions as suggested by the different authors and check their compatibility and consistency, e.g. whether every barrier matches with a solution. Finally we evaluate the options for solution and review them in the context of the hypothesis from the beginning. We conclude that the CDM as market-based instrument might not be suited for achieving a balanced distribution of projects. The CDM potential in Africa should be explored and the ongoing initiatives for capacity building need to be continued, reinforced an