Would preferential access measures be sufficient to overcome current barriers to CDM projects in Least Developed Countries?

Abstract

Financial support for Clean Development Mechanism (CDM) projects in underrepresented host countries was agreed on at the Copenhagen conference. The EU rules include special import quotas for Certified Emission Reductions (CERs) from Least Developed Countries (LDCs). This paper discusses whether these measures can contribute to overcoming barriers to CDM development in LDCs, how Programmes of Activities (PoAs) are performing, and how CDM projects and PoAs contribute to sustainable development in LDCs.
CER supply and demand scenarios for 2013-2020 show that preferential access measures for LDCs would not have an important impact on CDM in these countries if the barriers for project implementation are not overcome. The specific CDM projects and PoAs found in LDCs yield potentially high sustainable development benefits. Through a comparison between the climate regime and the Lomé Convention, a preferential access agreement in agricultural trade, we conclude that not just preferential access is important, but also reduced access costs and the removal of underlying barriers. Increased incentives for added-value products
characterise the Lomé success stories. For the climate regime, this could be translated into additional financial incentives for CDM projects with added value. As LDCs host a high share of them, PoAs could constitute an opportunity here.