The United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol provide the framework for a collaborative and multilateral effort to combat climate change, based on the principle of common but differentiated responsibilities among their parties.
The CDM - one of the three "flexibility mechanisms" identified in the Kyoto Protocol that participating countries can use to meet their greenhouse gas (GHG) reduction targets - is the only mechanism that involves developing countries.
Its purpose is to benefit both the investor and host countries by contributing to sustainable development in the host developing countries, and by allowing investor countries to meet their GHG reduction targets at the lowest possible cost, by taking advantage of the lower marginal cost of reducing GHG emissions in developing countries. In return for their investments, investor countries receive certified emissions reductions (CERs).
There are currently 1,300 registered CDM projects in 49 countries, and about another 3,064 projects in the project-registration pipeline.
The CDM, as defined in article 12 of the Kyoto Protocol, is an important instrument for promoting foreign investment in GHG emission reduction, and it simultaneously addresses the issue of sustainable development. Moreover, although the CDM does not have an explicit technology-transfer mandate, it may contribute to technology transfer by financing emission reduction projects using technologies currently not available in the host countries.
The complexities involved in conducting, monitoring, verifying and enforcing CDM projects allow considerable margin for the market development of various service activities, including engineering, and environmental, legal and verification services. Within the international framework for the CDM, many legal, financial and technical issues are currently under discussion in the context of the Bali Roadmap.
The experience to date shows that most developing countries, in particular the least developed countries (LDCs) which have limited institutional capacity, are facing a significant challenge in taking a proactive approach to participating as equal and reliable partners in the CDM. Around 75 per cent of CDM projects are hosted by four developing countries only.
The Expert Meeting is expected to contribute to a better understanding of the CDM, of how this mechanism functions and how its contribution to sustainable development in developing countries might be enhanced.
It is also expected to make concrete recommendations on how to overcome the existing obstacles to greater CDM investment flows, and to give guidance to UNCTAD´s work in this area, in accordance with the mandate contained in paragraph 100 of the Accra Accord.
Inputs from experts
Experts nominated by member States are encouraged to submit brief papers (approximately five pages) as contributions to the work of the meeting.
The papers should be submitted to the UNCTAD secretariat in advance of the meeting.
The papers will be made available at the meeting in the form and language in which they are received.
Experts are requested to submit papers to the UNCTAD secretariat as soon as possible, addressed to:
Mr. Lucas Assunção
Palais des Nations
CH-1211 Geneva 10, Switzerland
fax: +41 22 917 02 47
e-mail: lucas.assuncao@unctad.org
