Clean Development Mechanism (CDM)

The purpose of the CDM is to assist developing (non Annex I) countries in achieving sustainable development and in contributing to the ultimate objective of the UN Framework Convention on Climate Change (UNFCCC), and to assist the industrialized countries (Annex I) in achieving compliance with their quantified emission limitation and reduction commitments under the Kyoto Protocol.  By not taking an integrated view of the long-term development needs of the developing countries, most conventional analysis put efficiency before equity. CDM projects require a longer-term perspective to ensure that developing countries are able to grow economically and eradicate poverty, and do not leave to chance the deep and costly emissions cuts that will be required in mid-century.

Recent Activities

CDM Roundtable in Amsterdam
On 11-12 April 2002, a CDM Roundtable was organized by UNDP in Amsterdam and attended by nearly 50 participants representing Annex I and non-Annex I countries, the UN and other multilateral agencies, CDM Executive Board Members and experts, and centres of excellence. The Roundtable was convened to discuss various CDM related issues and provide recommendations to UNDP in refining its evolving climate change strategy to assist client countries in meeting their objectives of human development and economic growth in partnership with other institutions, agencies and centres of excellence.
This informal brainstorming session generated lively and productive discussions and resulted in valuable feedback for guiding UNDP’s evolving CDM strategy.

The following background documents are available for downloading:

Roundtable Presentations:

Engaging the Private Sector in the Clean Development Mechanism (CDM): A UN Foundation funded project involving UNDP, the World Business Council on Sustainable Development (WBCSD), UNIDO and UNCTAD
The United Nations Foundation (UNF) has funded a 2 year project titled "Engaging the Private Sector in Clean Development Mechanism (CDM) Project Activities under the UNFCCC/Kyoto Protocol". This inter-agency project involves a partnership between UNDP and the World Business Council for Sustainable Development (WBCSD), as well as activities undertaken by UNIDO and UNCTAD UNDP is the overall coordinator of the project.

The project aims to engage the private sector and facilitate private sector investment in the CDM through catalytic ‘learning by doing’ CDM projects that meet the objectives of the Framework Convention on Climate Change and Kyoto Protocol and are also viable on a commercial basis. The specific goals are:

• To engage and build capacity and capability within the private sector, and between private sector and government, to formulate, shape and implement CDM projects; and
• To inform various stakeholders on the rules and operational procedures of the CDM, in order to assist host countries in attracting private sector investment.

The project pursues a solution-oriented approach grounded in investment and project appraisal in the real world - while taking into account host country needs and concerns.

Pilot activities are currently under way in Brazil and South Africa. The Project Activities in Brazil have led to identification of a demonstration project by WBCSD in collaboration with BP. The UNDP Country Office in Brazil is in the process of finalizing collaboration with a suitable private sector entrepreneur to take the CDM process forward through learning by doing capacity building activities. In South Africa, a Project Development Forum was recently organized to initiate a dialogue between the government of South Africa and other stakeholders in the Country including the private sector and the civil society to help identify tangible actions to make CDM viable in the Country.

WBCSD has developed CDM-Connect in cooperation with UNDP. CDM-Connect is a knowledge management system to share the dispersed knowledge existing on the CDM all over the world. This system allows people interested in various aspects of the CDM-field to discuss issues online.

The following documents are available for downloading:

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