Sustainable Development and the Clean Development Mechanism: A South African Case Study
In: The journal of environment & development: a review of international policy, Band 13, Heft 3, S. 201-219
ISSN: 1552-5465
The clean development mechanism (CDM) is often seen as providing the financial benefits and transfers of cutting-edge green technology that enable developing countries to reduce emissions and achieve their sustainable development goals. The process of implementing the mechanism is, however, fraught with challenges. The absence of the United States in the carbon market has induced the low price of certified emissions reductions through the CDM, while host countries desire to ensure the sustainable development benefits of the CDM is likely to result in a complex approval process, which would further increase transaction costs. This article examines the CDM implementation environment in the context of a South African case study. It is argued that a fine balance needs to be struck between the spirit of the CDM, as encapsulated in its mandate to promote sustainable development in host countries, and its economic rationale when host countries approve those projects they deem beneficial.