Recommendations for the review of the modalities and procedures for the Clean Development Mechanism

Carbon Market Watch argues that the CDM requires fundamental reform to address failures in human rights accountability, additionality testing, and sustainable development monitoring. Key recommendations include establishing a formal grievance mechanism, restricting technology eligibility to exclude fossil fuels, and introducing liability rules for Designated Operational Entities to prevent conflicts of interest.

• The CDM currently lacks an accountability or grievance mechanism, leaving civil society with no means to raise concerns after a project is registered, which is critical given that over 8,000 project activities and PoAs are registered.
• Stakeholder consultation processes are insufficient; project documents are often unavailable in host country languages, and there is no procedure for post-registration comments or addressing human rights and negative environmental impacts.
• The CDM's 'technology neutrality' is criticized for allowing coal power plants to apply for funding, and the document argues for a 'negative list' to exclude technologies with low additionality, such as industrial gas projects (HFC-23), nitrous oxide reduction from adipic acid, and large power projects including coal and hydro.
• Current additionality testing is deemed ineffective, with estimates suggesting that non-additional offsets could lead to a de-facto increase in global emissions between 0.7 and over 3 Gt by 2020.
• The document recommends that the CDM Executive Board's membership and election process be reformed to prevent conflicts of interest, specifically by barring individuals from Designated National Authorities (DNAs), Designated Operational Entities (DOEs), or institutions that trade CERs.
• To ensure auditor independence, the document proposes that Designated Operational Entities (DOEs) be assigned and paid by a UNFCCC body rather than by the project developers.
• The document argues for the inclusion of both E- (climate-friendly) and E+ (emissions-intensive) national policies in additionality and baseline determinations to prevent over-crediting and double counting under the Paris Agreement.

APA

Carbon Market Watch (2016). Recommendations for the review of the modalities and procedures for the Clean Development Mechanism. https://carbonmarketwatch.org/wp-content/uploads/2016/11/FINAL-CMW_Position_CDM-review_SBI45-COP22_final.pdf

Chicago

Carbon Market Watch. Recommendations for the review of the modalities and procedures for the Clean Development Mechanism. 2016. https://carbonmarketwatch.org/wp-content/uploads/2016/11/FINAL-CMW_Position_CDM-review_SBI45-COP22_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=November 2016 |url=https://carbonmarketwatch.org/wp-content/uploads/2016/11/FINAL-CMW_Position_CDM-review_SBI45-COP22_final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2016recommendations, author = {{Carbon Market Watch}}, title = {{Recommendations for the review of the modalities and procedures for the Clean Development Mechanism}}, publisher = {Carbon Market Watch}, year = {2016}, month = nov, url = {https://carbonmarketwatch.org/wp-content/uploads/2016/11/FINAL-CMW_Position_CDM-review_SBI45-COP22_final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }