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CDM Flashcards
The CDM addresses the second objective by allowing the Annex I countries to meet part of their emission reduction commitments under the Kyoto Protocol by buying Certified Emission Reduction units from CDM emission reduction projects in developing countries (Carbon Trust, 2009, p. 14).[3] Both the projects and the issue of CERs units are subject to approval to ensure that these emission reductions are real and "additional." The CDM is supervised by the CDM Executive Board (CDM EB) under the guidance of the Conference of the Parties (COP/MOP) of the United Nations Framework Convention on Climate Change (UNFCCC).
The CDM allows industrialized countries to buy CERs and to invest in emission reductions where it is cheapest globally (Grubb, 2003, p. 159).[4] Between 2001, which was the first year CDM projects could be registered and 7 September 2012, the CDM issued 1 billion Certified Emission Reduction units.[5] As of 1 June 2013, 57% of all CERs had been issued for projects based on destroying either HFC-23 (38%) or N2O (19%).[6] Carbon capture and storage (CCS) was included in the CDM carbon offsetting scheme in December 2011.[7]
However, a number of weaknesses of the CDM have been identified (World Bank, 2010, p. 265-267)[full citation needed]. Several of these issues were addressed by the new Program of Activities (PoA), which moves to approving 'bundles' of projects instead of accrediting each project individually. In 2012, the report Climate Change, Carbon Markets and the CDM: A Call to Action said governments urgently needed to address the future of the CDM. It suggested the CDM was in danger of collapse because of the low price of carbon and the failure of governments to guarantee its existence into the future. Writing on the website of the Climate & Development Knowledge Network, Yolanda Kakabadse, a member of the investigating panel for the report and founder of Fundación Futuro Latinamericano, said a strong CDM is needed to support the political consensus essential for future climate progress. "Therefore we must do everything in our hands to keep it working," she said.