VIEWS TO THE REVIEW OF THE MODALITIES AND PROCEDURES OF THE CLEAN DEVELOPMENT MECHANISM

Carbon Market Watch argues that the Clean Development Mechanism (CDM) is facing a market collapse due to low demand and an over-supply of non-additional carbon credits. The organization urges a fundamental reform of additionality requirements, the shortening of crediting periods, and the establishment of human rights standards and grievance mechanisms. It further recommends strengthening civil society participation, addressing conflicts of interest among Designated Operational Entities (DOEs), and improving the governance and codes of conduct of the CDM Executive Board.

• The CDM market collapsed in 2012 with prices falling below one Euro, driven by weak emission reduction targets and an over-supply of credits resulting from lenient additionality rules.
• Current additionality rules are ineffective, allowing 'free-rider' projects that would occur without CDM incentives; large-scale power supply and methane projects specifically are identified as unlikely to be additional and could increase global GHG emissions by up to 3.6 Giga tonnes CO2e through 2020.
• The CDM Executive Board has previously registered projects despite evidence of human rights abuses, claiming it lacks a mandate to address such issues, despite the UN Charter and UNFCCC decisions requiring respect for human rights in climate actions.
• The mechanism lacks adequate monitoring, reporting, and verification (MRV) for sustainable development, leading to projects with no contribution to sustainability or even negative impacts, such as coal power plants.
• Stakeholder consultation processes are insufficient and poorly documented, often failing to adequately inform affected communities or provide a means for civil society to raise concerns after a project is registered.
• A conflict of interest exists because Designated Operational Entities (DOEs) are paid by the project developers they audit, which compromises their independence and neutrality.
• The CDM Executive Board and UNFCCC Secretariat suffer from governance failures, including a lack of transparent nomination processes, the absence of an explicit code of conduct, and potential conflicts of interest among members.

APA

Carbon Market Watch (2013). VIEWS TO THE REVIEW OF THE MODALITIES AND PROCEDURES OF THE CLEAN DEVELOPMENT MECHANISM. https://carbonmarketwatch.org/wp-content/uploads/2013/03/Views-on-the-CDM-MP-review_CarbonMarketWatch_25032013.pdf

Chicago

Carbon Market Watch. VIEWS TO THE REVIEW OF THE MODALITIES AND PROCEDURES OF THE CLEAN DEVELOPMENT MECHANISM. 2013. https://carbonmarketwatch.org/wp-content/uploads/2013/03/Views-on-the-CDM-MP-review_CarbonMarketWatch_25032013.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=VIEWS TO THE REVIEW OF THE MODALITIES AND PROCEDURES OF THE CLEAN DEVELOPMENT MECHANISM |date=25 March 2013 |url=https://carbonmarketwatch.org/wp-content/uploads/2013/03/Views-on-the-CDM-MP-review_CarbonMarketWatch_25032013.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2013views, author = {{Carbon Market Watch}}, title = {{VIEWS TO THE REVIEW OF THE MODALITIES AND PROCEDURES OF THE CLEAN DEVELOPMENT MECHANISM}}, publisher = {Carbon Market Watch}, year = {2013}, month = mar, url = {https://carbonmarketwatch.org/wp-content/uploads/2013/03/Views-on-the-CDM-MP-review_CarbonMarketWatch_25032013.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }