Evaluating the clean development mechanism

The Kyoto Protocol adopted three flexible market-based mechanisms to achieve an emission reduction target in a cost-effective manner. Of them, the Clean Development Mechanism (CDM) is the only mechanism that currently links developed and developing countries. Since the registration of the first CDM project in late 2004, the number and annual emission reduction amounts from CDM projects has been growing exponentially. During this time period several issues have impacted the CDM. The aim of this chapter is to analyse the effectiveness of the CDM's implementation. More broadly and beyond China and India, CDM projects have not been able to capitalise on sustainable development objectives because of the recognition of unintended projects (such as hydrofluorocarbon projects) and the introduction of the provisions of unilateral CDM policy. Despite the disproportionate level of attention, emissions of greenhouse gasses have been growing faster in developing countries than elsewhere. The conclusions drawn are that the CDM's implementation capacity is less, than would at first appear