The Clean Development Machanism in China: Status and Potential

The Clean Development Mechanism is one of three flexible mechanisms established under the Kyoto Protocol that enables the countries that are listed in Annex I in the INFCCC to invest in GHG emission reduction projects in non-Annex I developing countries. This enables the Annex I countries to claim Certified Emissions Reductions (CERs) to assist them in their compliance with their binding GHG emission reduction commitments at home (IBRD/World Bank 2004). The second objective of the CDM is to assist the developing countries achieve sustainable development.

China was initially sceptical to the introduction of the flexible mechanisms and saw them as instruments for developed countries to escape responsibility. There was also concern regarding public funding resulting in the diversion of ODA. Thus, CDM in China had a fairly slow start. However, China’s position has changed since COP 7 (Marrakech Accords) (Tangen and Heggelund 2003). China now actively supports the CDM, and has developed and apparatus for identyfying, approving and implementing CDM projects.  China has the potential to generate 50 percent of the world’s CERs on an annual basis, thus, there is great interest for developemtn of CDM projects in China.

The reports begins with background to set the stage, regarding economic development, energy challenges and climate change. It continues to discuss the status of CDM developmetns in China, including the CDM measures. The last part concerns possible areas for Norwegian Participation in CDM in China.


Download the Complete Report (PDF)