Clean Development Mechanism: Opportunities for public participation in project approval

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ELAW

How do interested people participate in
decisions about whether a proposed project will be certified as a CDM project?

The
Clean Development Mechanism (CDM) is a “flexibility mechanism” under the Kyoto
Protocol (“Kyoto Protocol” or “Protocol”) to the United Nations Framework
Convention on Climate Change (UNFCCC). Established under Article 12 of the
Kyoto Protocol, the CDM allows countries to meet part of their target under the
Protocol by implementing sustainable projects in developing countries. These projects can generate certified
emission reduction (CER) credits (ex: 1 ton of carbon dioxide = 1 CER), which
can be traded or sold based on the country’s needs in meeting its Kyoto target.
According to the CDM Secretariat, the CDM is the first global environmental
credit procedure providing a systematic emissions offset instrument benefiting
industrialized and developing countries alike.

The
procedural framework for the CDM validation process provides a limited window
of opportunity for stakeholder participation. Once a project design is approved
by the host country, a private, independent certifier known as a Designated
Operational Entity (DOE) verifies that the project proposal satisfies CDM
requirements before the project can be registered by the CDM Executive
Board. The CDM Executive Board has
established procedures for stakeholder participation during this DOE validation
process:

1) The DOE must provide the project
design to the stakeholders

to receive comments from
stakeholders.

2) The DOE must receive and publish
comments from stakeholders

within a 30 day period for small scale
projects, and a 45 day

period for large scale forest projects.

3) Once the comment period elapses, the
DOE evaluates whether

the project should be approved, and then
informs stakeholders

of the decision.

4) For validated projects, the DOE
publicizes and submits a

registration request to the CDM Executive
Board.

In
evaluating whether a project should be approved, the DOE must take into account
the stakeholders’ input received during the comment period. The comments should address whether the
substance of a project proposal is aligned with the objectives of the CDM. These objectives are described within the
CDM Verification and Validation Manual, and include technical, methodological,
procedural and regulatory aspects of a project proposal. The DOE must include in a validation report
details of actions taken in due account of the stakeholders’ comments. If the
DOE determines any comments to not be “sufficiently substantiated,” they must
request clarification if the comments suggest the project may not comply with
CDM objectives.

The
UNFCCC CDM website serves as the primary mode of communication between the
stakeholders, and the CDM authorities. The website provides a database of
“Validation Projects” where shareholders can obtain information about a
proposed project design to provide comments to the DOE for proposed
projects. Stakeholders can track
projects in their country by selecting their “Host Country” under the search
criteria category on the “Validation Projects” webpage. In addition to participating in decisions
regarding which projects will be certified as CDM projects, stakeholders may
view Executive Board meetings via webcasts, archived reports, and provide
comments on procedural reforms to the CDM process on the UNFCCC website.