This report has been produced in response to an Evidence on Demand Help-Desk request. It supports a proposed DFID project business case to increase the flow of international carbon finance to Least Developed Countries (LDCs) – with a focus on Africa – to support poor peoples' access to clean energy.
The report highlights the major barriers and reflects the broader market context in which Clean Development (CDM) projects operate. Conventional barriers to private sector investment in clean energy access are as important as CDM-specific barriers. There is some project evidence but no systematic analysis that CDM projects improve energy service affordability within CDM project boundaries. There also evidence but no systematic analysis of poor peoples’ and community involvement in the selection of technologies through the CDM. Findings take account of the voluntary carbon market, which usually aim to show high sustainable development benefits, including energy access.
Relevant recommendations for supporting benefits for poor people and communities through the CDM include:
- Collaborate with other market-based mechanisms
- Identify “positive lists” to simplify CDM additionality assessments
- Encourage the increased development of projects with high co-benefits, e.g. household-level service projects
- Stimulate collaborative and local technology innovation
- Enhance the CDM accounting of suppressed demand for energy services
- Simplify CDM procedures for household-level services and public services
- Introduce a new grant scheme and expand the existing loan scheme
- Finance CDM institutional capacity in under-represented countries.
Doyle, J. Review of available information on how the CDM can produce greater benefits for poor people. Evidence on Demand, UK (2013) 17 pp. [DOI: 10.12774/eod_hd033.jan2013.doyle]