The secretariat of the United Nation’s Framework Convention on Climate Change (UNFCCC) recently published research showing that the Kyoto Protocol’s clean development mechanism (CDM) has spurred billions of dollars of investment in projects that curb greenhouse gases and contribute to sustainable development. The report, titled Benefits of the Clean Development Mechanism 2012, answers in the affirmative with numbers and analysis on the questions: Is the CDM fulfilling its design objectives and is it providing other benefits along the way for developing countries?
The study examined roughly 4,000 CDM project activities with respect to their contributions to sustainable development, technology transfer and regional distribution. The report, now available on the UNFCCC CDM website, also includes revised estimates of finance and costs for various types of projects, and new estimates of savings and revenue due to the use of the certified emission reductions (CERs) produced by CDM projects.
Report highlights:
- USD 215.4 billion investment in CDM projects spurred by the end of 2012 in developing countries.
- USD 21.5–43 billion estimated foreign investment as a result of CDM projects to date.
- USD 3.6 billion estimated compliance savings to Annex I Parties under the Kyoto Protocol.
- 110,000 megawatts of new renewable energy capacity from CDM projects.
- The CDM has effectively designed a set of indicators for reporting on sustainable development in host countries.
- CDM facilitates the transfer of technology and knowledge to developing countries.
- CDM projects make more efficient use of capital invested: 15% (solar photovoltaic) to 50% (geothermal and solar thermal power) less capital intensive than non-CDM projects in developed countries.
Energy in Demand - Sustainable Energy - Rod Janssen 