Market Mania
Carbon markets are in the dumps and policy makers and market participants alike are scrambling to come to their rescue. This weekend, ECO spent two days with delegates to discuss the future of the Clean Development Mechanism (CDM) and what changes to its underlying modalities and procedures are needed to make the CDM fit for the future. The number of delegates that showed up on Sunday at 9 AM showed us that there is hope.
Let’s start with the good news. For the first time, human rights impacts of CDM projects and harmful impacts of large power supply projects in the CDM were discussed openly! Now dear delegates, it’s time to move into action mode: start by kicking coal out of the CDM, find a way to phase out large scale power projects, improve the stakeholder consultation process, establish a grievance mechanism and move the whole CDM far beyond offsetting!
But ECO is worried that certain Parties that host many CDM projects did not seem to like the proposed changes. Some of them posited that everything was all right with the mechanism and that people who raised doubts about additionality were only showing their ignorance. ECO suggests that a little less self-congratulation would be in order given the number of academic studies that have concluded that there are in fact substantial problems.
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