RECOMMENDATIONS FOR THE REVIEW OF THE MODALITIES AND PROCEDURES FOR THE CLEAN DEVELOPMENT MECHANISM

Carbon Market Watch proposes a comprehensive overhaul of the Clean Development Mechanism (CDM) to ensure it delivers net atmospheric benefits rather than acting as a zero-sum offsetting tool. Key recommendations include tightening additionality testing through 'negative lists' for ineligible technologies, shortening crediting periods, and integrating national E+ and E- policies into baseline assessments. The document also advocates for strengthened civil society participation via new communication channels and a formal grievance mechanism. Furthermore, it calls for increased transparency from Designated National Authorities regarding sustainable development, stricter eligibility and conflict-of-interest rules for the CDM Executive Board, and a shift in the payment structure for Designated Operational Entities to ensure auditor independence.

• The CDM currently functions as a zero-sum offsetting mechanism that may increase global emissions if non-additional credits are issued; estimates suggest non-additional offsets could range from 0.7 to over 3 Gt by 2020.
• To improve environmental integrity, the document recommends establishing a 'negative list' to exclude technology types with low additionality or high perverse incentive risks, specifically naming industrial gas projects (HFC-23), nitrous oxide reduction from adipic acid production, and large power projects including coal and hydro.
• The document argues that crediting periods should be shortened and defined individually by project type to prevent the issuance of credits to projects that are no longer additional due to technological or socio-economic changes.
• Both E- policies (supporting climate-friendly technologies) and E+ policies (supporting emissions-intensive technologies) should be included in additionality and baseline determinations for all projects, including those seeking renewal.
• Civil society participation should be strengthened by introducing a local stakeholder communications channel for case-specific matters and a global stakeholder consultation during the verification stage.
• A formal CDM grievance mechanism is needed, including environmental and social safeguards similar to the REDD+ framework and a procedure for the CDM Board to refer social and environmental concerns to Designated National Authorities (DNAs).
• Sustainable development contributions should be improved by requiring DNAs to make benefit indicators public, defining global 'no harm' standards, and making the SD Tool's monitoring, reporting, and verification requirements mandatory.
• Governance of the CDM Executive Board should be reformed through a strengthened code of conduct and eligibility criteria that prohibit members from being affiliated with DNAs, DOEs, or institutions that develop or trade CERs.
• To eliminate conflicts of interest, Designated Operational Entities (DOEs) should be assigned and paid by a UNFCCC body rather than by the project developers.

APA

Carbon Market Watch (2015). RECOMMENDATIONS FOR THE REVIEW OF THE MODALITIES AND PROCEDURES FOR THE CLEAN DEVELOPMENT MECHANISM. https://carbonmarketwatch.org/wp-content/uploads/2015/06/CMW_Position_CDM-review_final.pdf

Chicago

Carbon Market Watch. RECOMMENDATIONS FOR THE REVIEW OF THE MODALITIES AND PROCEDURES FOR THE CLEAN DEVELOPMENT MECHANISM. 2015. https://carbonmarketwatch.org/wp-content/uploads/2015/06/CMW_Position_CDM-review_final.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=RECOMMENDATIONS FOR THE REVIEW OF THE MODALITIES AND PROCEDURES FOR THE CLEAN DEVELOPMENT MECHANISM |date=June 2015 |url=https://carbonmarketwatch.org/wp-content/uploads/2015/06/CMW_Position_CDM-review_final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2015recommendations, author = {{Carbon Market Watch}}, title = {{RECOMMENDATIONS FOR THE REVIEW OF THE MODALITIES AND PROCEDURES FOR THE CLEAN DEVELOPMENT MECHANISM}}, publisher = {Carbon Market Watch}, year = {2015}, month = jun, url = {https://carbonmarketwatch.org/wp-content/uploads/2015/06/CMW_Position_CDM-review_final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }