This paper addresses an analysis of international CDM experiences and its potential contribution to the LAC region.
The Paper begins with a section describing the CDM and the rules governing its use. This is followed by an up-to-date description of the activities of the CDM Executive Board, Methodologies Panel and Operational Entities, including interpretation of the Marrakech Accords, baseline review/approval process, project approval and rejection process, registration process, treatment of additionality etc.
This is followed by a more detailed review in Section 2 with a more detailed review of the CDM baseline and project approval process to date, including the types of project methodologies that have been approved and rejected, and the implications of the approval record for the LAC region. Particular attention is paid to the approval record of the Board with respect to additionality, and the rationale behind these decisions.
In Section 3, the prospective role of the CDM in meeting developing goals and the contribution of the simplified procedures for small-scale CDM projects is addressed.
Section 4 describes the current CDM markets, while Section 5 undertakes a review of the institutional arrangements and infrastructure for the CDM in a cross-section of countries as well as an examination of their sustainable development criteria, and provisions for stakeholder participation. Examples are provided on how host country governments outside OLADE have developed CDM project criteria, established approval mechanisms and infrastructure, supported project development (including training, marketing, etc.), and successfully managed stakeholder participation in the CDM, ensuring that rural communities benefit from the CDM and women and indigenous people participate in CDM project development and implementation strategies.
Section 6 describes the various capacity building programs established by Annex 1 countries to support the CDM.
In each of the first 6 sections, implications for the LAC region are identified. Section 7 brings these conclusions together into a concise summary. The assessments provided in each of the preceding sections will hopefully give LAC stakeholders a more comprehensive understanding of the CDM process and highlight how the CDM may be used to support sustainable development in the LAC Region. This section provides some recommendations for LAC countries based on the lessons learned during the first two years of the CDM.

By: Pembina Institute for Appropriate Development

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