The Environmental Integrity of the CDM: A Legal Analysis of its Institutional and Procedural Shortcomings

Abstract

There is growing concern that a significant proportion of Clean Development Mechanism (CDM) credits (CERs) do not reflect real emission reductions and that the mechanism is inadequate to assist developing countries in their transition towards a low-carbon economy. Hence, any decision to maintain the CDM in its current form within a post-2012 climate agreement has to be considered with great care. This study examines, in particular, how the baseline and the additionality requirements have been interpreted and sheds some light on the verification process and the oversight by the Executive Body (EB). Finally, it shows that the CDM is inadequate to foster significant policy reforms, which are a prerequisite for any meaningful change in the emission trends of developing countries.