The Environmental Integrity of the CDM: A Legal Analysis of its Institutional and Procedural Shortcomings

There is growing concern that a significant proportion of Clean Development Mechanism (CDM) credits (CERs) do not reflect real emission reductions and that the mechanism is inadequate to assist developing countries in their transition towards a low-carbon economy. Hence, any decision to maintain the CDM in its current form within a post-2012 climate agreement has to be considered with great care. This study examines, in particular, how the baseline and the additionality requirements have been interpreted and sheds some light on the verification process and the oversight by the Executive Body (EB). Finally, it shows that the CDM is inadequate to foster significant policy reforms, which are a prerequisite for any meaningful change in the emission trends of developing countries

The Arduous Process of Climate Change Negotiations: How Science Can Facilitate the Desired Outcome

Effective interaction between climate science and policy is important for moving climate negotiations forward to reach an ambitious global climate change deal. Lack of progress in the United Nations Framework Convention on Climate Change (UNFCCC) negotiations during recent years is a good reason for taking a closer look at the process of climate science–policy interaction to identify and eliminate existing shortcomings hindering climate policymaking. This paper examines the current state of climate science–policy interaction and suggests ways to integrate scientific input into the UNFCCC process more effectively. Suggestions relate to improvement in institutional structures, processes and procedures of the UNFCCC and the Intergovernmental Panel on Climate Change (IPCC), quality of scientific input, credibility of scientific message and public awareness of climate change

The Principle of Common Concern and Climate Change

Effective policies combating global warming and incentivising reduction of greenhouse gases face fundamental collective action problems. States defending short term interests avoid international commitments and seek to benefit from measures combating global warming taken elsewhere. The paper explores the potential of Common Concern as an emerging principle of international law, in particular international environmental law, in addressing collective action problems and the global commons. It expounds the contours of the principle, its relationship to common heritage of mankind, to shared and differentiated responsibility and to public goods. It explores its potential to provide the foundations not only for international cooperation, but also to justify, and delimitate at the same time, unilateral action at home and deploying extraterritorial effects in addressing the challenges of global warming and climate change mitigation. As unilateral measures mainly translate into measures of trade policy, the principle of Common Concern is inherently linked and limited by existing legal disciplines in particular of the law of the World Trade Organization

The CDM: A Critique of Its Environmental Integrity

With a substantial project pipeline and more than 500 million Certified Emission Reductions issued to date, the Clean Development Mechanism (CDM) has rapidly become a central pillar of the international carbon market. While this success testifies to its appeal for investors and project developers, growing criticism has been directed against a number of perceived shortcomings, from disappointing environmental and development benefits to cumbersome approval procedures and flawed governance structures. In this new collection of essays, more than twenty recognized experts draw on their diverse professional and geographic backgrounds to identify challenges and opportunities on the path towards CDM reform. Recommendations for improvement are complemented by case studies in a wide range of sectors and geographic settings. Practitioners and academics alike will benefit from the rigorous analysis and timely conclusions outlined in this volume

Reforming the Clean Development Mechanism to Accelerate Technology Transfer

The Clean Development Mechanism (CDM) is the largest technology-transfer mechanism under the United Nations Framework Convention on Climate Change (UNFCCC). The idea of maintaining it or scaling it up in the post-2012 period, to accelerate technology transfer, is hence attractive. The weak environmental integrity of the CDM and its propensity to promote predominantly end-of-pipe technologies, however, caution against its perpetuation under a new global climate accord. This paper proposes that, if the CDM were to be maintained, reforms should be adopted to improve the investment conditions for key climate technologies and modify the incentive structure of the CDM. While such reforms contribute to making key technologies more attractive for investors they do not address the CDM’s inability to foster policy reforms. This paper therefore suggests that the CDM is progressively phased out in favour of sectoral carbon crediting mechanisms

The Integration of Electricity from Renewable Energy Sources in the European Union Electricity Market – The case for “Smart Grids”

The power sector is to play a central role in a low carbon economy. In all the decarbonisation scenarios of the European Union renewable energy sources (RES) will be a crucial part of the solution. Current grids constitute however major bottlenecks for the future expansion of RES. Recognising the need for a modernisation of its grids, the European Union has called for the creation of a "smart supergrid" interconnecting European grids at the continental level and making them "intelligent" through the addition of information and communication technology (ICT). To implement its agenda the EU has taken a leading role in coordinating research efforts and creating a common legislative framework for the necessary modernisation of Europe’s grids. This paper intends to give both an overview and a critical appraisal of the measures taken so far by the European Union to "transform" the grids into the backbone of a decarbonised electricity system. It suggests that if competition is to play a significant role in the deployment of smart grids, the current regulatory paradigm will have to be fundamentally reassesse

The UNFCCC at a Crossroads: Can Increased Involvement of Business and Industry Help Rescue the Multilateral Climate Regime?

Significant progress in the multilateral negotiations on climate change will only be made if civil society and in particular business and industry stakeholders actively contribute to shape it. Admitted to the international negotiations in the form of non governmental organisations (NGOs), business and industry entities continue however to be far more active at the national than at the international level. Their pro-active investment in new international policy spaces is hence highly warranted. The enhanced participation of the private sector in the multilateral climate regime, however, faces many challenges that will have to be overcome. Lessons on how to achieve an effective involvement may be drawn in particular from the Montreal Protocol on ozone-depleting substances, the World Trade Organisation, the European Union and the Asia-Pacific Partnership on Clean Development and Climate. A preliminary condition for an effective dialogue with business and industry stakeholders is a transparent process. Moreover, systematic consultations with stakeholders should be held, allowing a regular exchange of information and the effective channeling of the expertise of the private sector into the negotiation process

The Green Climate Fund: how attractive is it to donor countries?

Destined to channel a significant part of the US$ 100 billion pledge made by developed countries under the United Nations Framework Convention on Climate Change (UNFCC) the Green Climate Fund (GCF) has been set up with the ambition of becoming the main global fund in the area of climate finance. Although many pieces of the final puzzle are still missing the GCF is now ready to solicit funding. It is a fact that its institutional design has little in common with the very successful trust funds operating under the aegis of the World Bank. This paper explores the reasons that are at the centre of the massive growth in ‘multi-bi-financing’ and provides an overview of the most recent trends in ODA and climate finance. Based on this study, it analyses whether the GCF is an attractive institutional channel for donors. It concludes that many of the GCF’s design elements should be improved, notably with the view to enhancing value for money integrating actively civil society actors and leveraging effectively private capital

Protecting Tropical Forests through Public Procurement of Emission Reductions

The rate of destruction of tropical forests continues to accelerate at an alarming rate contributing to an important fraction of overall greenhouse gas emissions. In recent years, much hope has been vested in the emerging REDD+ framework under the UN Framework Convention on Climate Change (UNFCCC), which aims at creating an international incentive system to reduce emissions from deforestation and forest degradation. This paper argues that in the absence of an international consensus on the design of results-based payments, “bottom-up” initiatives should take the lead and explore new avenues. It suggests that a call for tender for REDD+ credits might both assist in leveraging private investments and spending scarce public funds in a cost-efficient manner. The paper discusses the pros and cons of results-based approaches, provides an overview of the goals and principles that govern public procurement and discusses their relevance for the purchase of REDD+ credits, in particular within the ambit of the European Union