Trend Watch: CDMs

Carbon Development Mechanisms (CDMs) came into play following their inclusion into the Kyoto Protocol in February 2005, bolstering global projects by approximately 1,367 a year. In 2005, only 50 CDMs were in the works and as of November 2008, that total stood at 4,151 projects.

However, Africa is not even represented in the top 10 countries that host CDM projects despite news of projects taking place within the continent. On the list compiled by the European Union Sixth Framework Program “The State of Play with CDM,” South Africa ranks 16^th with a total of 27 projects; 13 of those projects have validation and 14 have been registered. Egypt comes in second for the continent with 11 projects. Although the figures in the report do not fully reveal the chances of long-term success of a country as a CDM host, some experts argue that a country with a “smaller share in the pipeline, but with projects with a high replicability potential, may in the long run turn out to benefit more from their CDM projects than countries with a larger share but with more ‘ad-hoc’ projects.”

Others claim that many renewable energy projects – particularly those in rural areas – are small and allowing these projects to be bundled would contribute greatly to sustainable development in those host countries.

The report also mentioned that of the 18 countries analyzed, eight of those have published specific criteria for the sustainable development contribution that CDM projects must deliver. For example, South African projects must meet economic, environmental, and social criteria. The criteria may include job creation, decreased dependency on fossil fuels, and local infrastructure, just to name a few.

One reason that Africa as a whole might fall short on the CDM bandwagon is that many projects are operated by a limited number of staff who are also responsible for other environmental issues. Therefore, attention to these projects fall by the wayside in order to maintain and meet other requirements.

A few African countries have the potential to make the top 10 list of countries that host CDM projects, but the main goal is to establish a network that will have long-term benefits for the countries and its residents.