Industrialized countries strive to fulfil at least part of their
obligation to reduce greenhouse gases by investing in projects in
developing countries rather than at home. Developing countries have
been rather critical of this idea. This book outlines the
development of the international negotiations on the subject and
analyses different design options for the Clean Development
Mechanism (CDM), taking into account the interests of various
groups, especially host countries. Two case studies - one on a
renewable energy project in Indonesia and another on Costa Rican
climate policy - show the problems that are likely to be
encountered by CDM and illustrate the importance of active host
country involvement. The authors discuss the problems that will be
addressed by forthcoming negotiation rounds and propose practical
solutions for the CDM including baseline-setting, institutional
structure and credit sharing. Moreover, a long-term view on linking
climate and development policy is taken to achieve an equitable
allocation of emission rights.
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