Resuscitating the Clean Development Mechanism

Carbon Market Watch outlines critical reforms needed for the Clean Development Mechanism (CDM) review at COP-19. The author warns that failure to address quality issues, particularly regarding additionality, could lead to an over-supply of more than 4 gigatonnes of CO2 offsets and drive prices below 1 EURO. Key recommendations include transitioning away from large-scale power supply projects, moving beyond pure offsetting to avoid double counting, shortening crediting periods to match technology lifespans, and establishing human rights standards. The document also calls for improved sustainable development monitoring, strengthened civil society participation through a CDM Ombudsman, and a restructuring of auditor payment to eliminate conflicts of interest.

• The Clean Development Mechanism (CDM) faces a severe over-supply of carbon offsets exceeding 4 gigatonnes (Gt) of CO2, which risks driving offset prices below 1 EURO if quality issues are not addressed during the COP-19 review.
• Ineffective additionality demonstrations, particularly in large-scale power supply and methane projects, could increase global greenhouse gas emissions by up to 3.6Gtof CO2e by 2020 and artificially inflate the supply of credits.
• The concept of pure offsetting is deemed inappropriate for future climate treaties where both developed and developing countries have targets; the CDM must evolve to avoid double counting and integrate with Nationally Appropriate Mitigation Actions (NAMAs).
• The CDM Executive Board has registered projects despite evidence of human rights abuses, claiming a lack of mandate; the author argues that international law and Decision 1/CP.16 require the Board to impose human rights standards on investors.
• Governance and liability issues plague the CDM, including a conflict of interest where auditors are paid by project developers and a lack of transparency in the nomination and election of the CDM Executive Board.

APA

CMW (2013). Resuscitating the Clean Development Mechanism. Carbon Market Watch. https://carbonmarketwatch.org/2013/03/04/resuscitating-the-clean-development-mechanism/

Chicago

CMW. Resuscitating the Clean Development Mechanism. Carbon Market Watch, 2013. https://carbonmarketwatch.org/2013/03/04/resuscitating-the-clean-development-mechanism/.

Wikipedia

{{cite press release |last1=CMW |title=Resuscitating the Clean Development Mechanism |publisher=Carbon Market Watch |date=4 March 2013 |url=https://carbonmarketwatch.org/2013/03/04/resuscitating-the-clean-development-mechanism/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{cmw2013resuscitating, author = {CMW}, title = {{Resuscitating the Clean Development Mechanism}}, publisher = {Carbon Market Watch}, year = {2013}, month = mar, url = {https://carbonmarketwatch.org/2013/03/04/resuscitating-the-clean-development-mechanism/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }