The 2012 Kyoto Protocol expiratory date is quickly approaching, but without a successor, Africa’s renewable energy funding could be greatly impacted. The main issue at question is the continuation of the Clean Development Mechanism (CDM), and while that only seems to be a small part of the entire renewable energy sector, there are many large-scale projects that have incorporated the CDM process to recruit more investors.
Currently, Egypt and South Africa lead the way with CDM projects while other African countries are ramping up efforts to include the mechanism (CDM Arrives in Guinea). Projects at risk could include Egypt’s Kafr El Dawar operated by Masdar Carbon and TriOcean Carbon which would allow Masdar to generate and monetize revenues from this project for 10 years. Ahmed Zaharan, Business Development Manager of TriOcean Carbon, said: “The project demonstrates that a huge CDM potential still exists in Egypt for small scale projects especially in the fuel switching and the renewable energy sectors.” He added, “Moreover, with the huge growth in energy demand in Egypt,
Morocco’s utility National de l’Electricité (ONE) signed an agreement under the CDM with a consortium for the sale of two million tons of carbon dioxide emissions from its largest operational wind farm in Tangiers. Under this agreement, the consortium will manage the project’s registration process under the United Nations Framework Convention on Climate Change (UNFCCC), and will purchase the pre and post-2012 Certified Emission Reductions (CERs*) coming from the project.
Analysis from Frost & Sullivan anticipated the CDM market to grow from 34 projects in 2009 to over 100 projects by 2015. Program Manager Cornelis van der Waal said, “Africa can capitalize on this as, under the United Nations’ CDM, developed countries are allowed to offset some of their GHG emissions by funding cleaner energy projects in developing countries.”
Other projects attempting to get off the ground like a waste-to-energy project in Nigeria could be halted entirely. Many studies have been conducted that show the positive results of CDM implementation in Africa, but without a successor, CDM’s recognition and continuation remains in limbo.
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