Better rules could boost African CDM projects: UN
By George Obulutsa
NAIROBI (Reuters) - African governments need to set clear rules in order to attract more projects under the U.N. Kyoto Protocol's Clean Development Mechanism (CDM), the United Nations Environment Programme chief said on Wednesday.
CDM promotes investments in emission-reducing projects in the developing world by companies and governments in rich nations.
In return for building wind farms or other projects, such investments can earn valuable carbon offsets called certified emission reductions (CERs) that can be sold for profit or used to meet mandatory targets to cut emissions.
"(There should be) clear signals by government that these policy frameworks are here to stay and will not change a year later, undermining the viability of these projects," UNEP executive director, Achim Steiner, told an African Carbon Forum.
According to data from the United Nations Environmental Programme's (UNEP) Risoe Centre, there are 4,890 CDM projects registered or being processed worldwide.
Only 122, or 2 percent, are in Africa and around 3 percent of CERs in the pipeline have originated from the continent.
Steiner said a predictable and resilient international carbon market would also help attract more investment. Continued...