07 March 2008

GPPi responds to call for views on how to strengthen the Kyoto Protocol’s mechanisms

The GPPi report suggests that, as it stands, the current CDM governance cannot fully and impartially meet the requirements of a well-functioning international regulatory system. Growing criticisms continue to emanate from market participants on the CDM’s institutional performance. GPPi identifies several flaws of substantial importance surrounding the mechanism’s functioning and effectiveness. These include the issues of: transparency, predictability, efficiency, and the review process. Focusing on each issue area independently, the GPPi report identifies the pitfalls, inconsistencies, and irregularities that contribute to the continuing underperformance of the CDM and when taken as a whole, how the above issues are inconsistent with commonly accepted principles of good governance.

The GPPi team also puts forth proposals to address these problematic issues that undermine the institutional framework of the Mechanism and hinder the evolution of the CDM as one of the cornerstones of the international emissions trading market. The proposal suggests ways in which to increase transparency to the CDM; addresses the importance of enhancing predictability and efficiency of the Mechanism; and the need to establish an independent review process.

To view the submission, please click here.

For more information, please contact Charlotte Streck or Jan Martin Witte.

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