Governing clean development: What have we learnt?

The Clean Development Mechanism (CDM) forms a key part of the international community’s attempt to reduce greenhouse gas emissions, but continues to fall short on its promise to provide sustainable development benefits in developing countries. Research by the Governance of Clean Development Project suggests that current reform agendas will do little to rectify this unless important aspects of the politics and governance of clean development are addressed. This briefing outlines the need to change the political relationships that determine who benefits from the CDM, which go beyond reducing market transaction costs or overhauling the formal institutions of CDM governance. Policies are required that recognise these challenges and create opportunities to drive significant changes in how governance works for both climate and developmen