Stephen Erario

Colby College

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

Analysis

· Only 8 of the most attractive non-Annex 1 countries accounted for 67% of (non-JI) PCF Expected ERs and 88% of CDM ERs

Note: Attractiveness determined for non-sink projects using three indicators: mitigation potential (using absolute GHG emissions), institutional CDM capacity, and general investment climate

What does each institution seek to achieve in terms of institution and capacity building?

Prototype Carbon Fund (PCF) – World Bank

Clean Development Mechanism (CDM) – CoP/MoP UNFCCC

· Intense, first tracks capacity building

1. Human resource development, particularly endowing those in CDM recipient countries with a deeper understanding of the organizational and legal framework.

2. Organizational development, particularly the establishment of management structures and chain-of-command.

3. Institutional legal framework development; particularly in reference to CER methodology and promotion of technology transfer

· Submission of methodologies to the CDM Executive Board Panel

· Initiate the growth of other exploratory, mission-oriented carbon funds i.e. CDCF, BioCarbon Fund

· Emission Reductions Projects

· Administering of CDM (Executive Board)

· Accrediting of Designated Operational Entities (DOE)

· Approval of methodologies

· Establishing/maintaining CDM registry

· Registration of project

· Issuance of CERs

· Provision of guidance on various aspects of CDM

· Emissions Reductions Projects