This brief report has been produced in response to an Evidence on Demand Helpdesk request. It has been produced in support of 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 and other poverty reducing technologies.
The report provides information on the ongoing efforts to reform the Clean Development Mechanism (CDM) so that more projects reach poor people and communities in least developed countries, including donor initiatives. The key areas of recent reforms identified in addition to those already considered by DFID are (a) Adoption of a new approach for demonstrating additionality (b) Adoption of Suppressed Demand guidelines (c) Adoption for default values of non-renewable biomass (NRB) (d) Launch of CDM Help Desks.
On other donor activities it is evident by the number of initiatives listed that there is recognition on the importance of a balanced regional distribution of CDM and the win-win opportunity that it presents. The number of initiatives range from the Programme of Activity (PoA) Support Centre in Germany managed by KfW Bankengruppe, to the recently launched World Bank Carbon Initiative for Development (CI-Dev) fund.
These sets of information show that the CDM reform efforts, if realised, will make clean energy and other low carbon technologies more affordable for poor people in LDCs. This would help expand energy access – through community and household based off-grid renewable technologies (like solar, biogas and micro hydro). It brings to show that international carbon market mechanisms will remain a key tool for delivering global emissions reductions and equally transform the lives for poor people in the LDCs – whilst also reducing carbon emissions.
Nyaoro, J. What efforts exist to reform the CDM so that more projects reach poor people and communities in least developed countries, including donor initiatives. Evidence on Demand, UK (2013) 20 pp. [DOI: 10.12774/eod_hd034.jan2013.nyaoro]