How Can Global Carbon Markets Promote Low-Carbon Cities in Developing Countries?

Per-capita greenhouse gas emissions in cities like Bangkok or Shanghai have already reached emission levels of cities like London or Toronto. Large parts of the building stock and service infrastructure in cities in rapidly developing countries will be built in the coming decades—and may lock in high emissions pathways. A survey of projects under the Clean Development Mechanism (CDM) of the Kyoto Protocol shows that only about 1% of projects have been submitted by municipalities, mostly in the waste management and more recently in the transport sector. This is probably due to a lack of technical know-how, legal barriers, methodological challenges, long project cycles and limited “visibility” of projects for the electorate. A case study of city network ICLEI’s experience with the CDM adds practical insights. We conclude that while the new market mechanisms under Article 6 may make it easier for municipalities to engage in international market mechanisms, new forms of cooperation between actors on multiple levels, potentially facilitated by ICLEI, are required to help to realize the urban potential in international market mechanisms