New Publications on the CDM as a Global Standard (Or Not), City-Wide PoAs and the New Market Mechanism

Me and colleagues got out a couple of new publications at the end of last year. Below are the abstracts and links to the papers.

Design options for sectoral carbon market mechanisms

The European Commission has published a study on the design options for the new market mechanism (NMM) that last year’s UN climate conference in Durban agreed to develop. The study was carried out by a consortium of consultants consisting of Ecorys, ClimateFocus, the Energy Reseach Centre of the Netherlands and the Wuppertal Institute.

The NMM is broadly understood as a mechanism that will scale-up greenhouse gas emission reductions in broad segments of economies, such as sectors, in developing countries. In contrast to the existing carbon market mechanisms under the Kyoto Protocol, for instance the clean development mechanism (CDM), the NMM would go beyond pure offsetting and produce a net atmospheric benefit.

The study provides recommendations to the Commission on the design of NMMs and the abatement options they could incentivize. It presents three alternative design proposals for NMMs and tested one of these proposals by applying it in theoretical case studies in five sectors in five developing countries: the steel sector in Brazil, the power sector in Chile and South Africa, refineries in Indonesia and the cement sector in Vietnam.

Prospects for CDM in Post 2012 Carbon Markets

What happens after the Kyoto Protocol: Will the project-related carbon market disintegrate and lead to separate national systems? Throughout the world new emissions trading systems are being established but without consistent international structures trading certificates from project-based mechanisms such as CDM (i.e. climate projects in developing or newly industrialising countries) is hampered.

DEHSt’s new discussion paper analyses how the CDM must be developed in order to keep it fit for the future.

City-Wide Programmes of Activities – An Option for Significant Emission Reductions in Cities?

This paper analyses whether city-wide approaches to carbon finance under the Clean Development Mechanism (CDM) are a viable option for significant emission reductions in cities. For this purpose, the paper provides an overview of emission sources and possible mitigation activities in cities, discusses the current role of developing country cities in the CDM and identifies the main barriers that hinder the engagement of cities in the carbon market. The authors then anaylse the CDM methodologies suitable for urban projects and review a proposal on a city-wide CDM PoA. The paper concludes with a discussion of alternative approaches to tap mitigation options in cities.

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