Realizing the Development Dividend: Making the CDM Work for Developing Countries (Phase I Report)
The CDM has a host of objectives not directly related to climate
change; it aims to bring host countries socio-economic and environmental
benefits through technology transfer and foreign direct investment. In
short, it aims to deliver a "development dividend." Based on an extensive
consultation process, this paper assesses the state of the emerging CDM
regime, asking whether trends presage a strong performance in this
context. It addresses three concerns: that the quality of the projects is
not what it could be; that the quantity is not what it needs to be, and
that the distribution of investment is skewed in ways that exclude most
poor developing countries. The paper concludes that the CDM has great
potential for sustainable development, but only if some changes are
made. It offers a number of recommendations.