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TAKING ACTION ON SUPPRESSED DEMAND
The document examines how 'suppressed demand'—the unmet desire for products or services due to barriers like low income, poor infrastructure, and high technology costs—leads to the underestimation of emission baselines in LDCs and African countries. It argues that because the CDM currently relies on actual (constrained) consumption rather than desired consumption, these regions are marginalized in the carbon market. The author advocates for the operationalization of guidelines adopted by the CDM Executive Board and the Conference of the Parties serving as a meeting of Parties to the Kyoto Protocol (CMP) to incorporate suppressed demand into baselines, which would increase the number of Certified Emission Reductions (CERs) and encourage investment in sustainable development projects in poor regions.
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Document type: Research paper