Stephen Erario

Colby College

ES334: An Examination of Developing Country Carbon Markets and Their Emerging Patterns

Abstract

Both the Prototype Carbon Fund (PCF) and the Clean Development Mechanism (CDM) are project-based mechanisms for reductions in the potential emissions of greenhouse gasses (GHGs) with a focus on sustainable development. The PCF has been operational since 2000 and has been a pioneer for project-based mechanism for emission-reductions (ERs). The CDM became active shortly after the Kyoto Protocol coming into force in 2005.

This paper aims to investigate the recent patterns of PCF and CDM project-based ERs as they relate to country attractiveness*. The roles of the PCF and CDM in the climate change regime will also be considered. The implications of these findings in relation to international environmental relations theory will be explored.

*Defined by mitigation potential, CDM capacity, and general investment climate

Research Questions

· What factors seem to shape the pattern of Clean Development Mechanism (CDM) and Prototype Carbon Fund (PCF) projects?

· What are the implications of these patterns found in these two institutions?