ABSTRACT
This book has endeavoured to address the barriers to Clean Development Mechanism (CDM) renewable energy projects at both thematic and country-specific levels. The major themes of each barrier category are described briefly in this section. As mentioned in the ‘Executive Summary’ of this book, the two largest barriers for project implementation relate to the openness of the electrical market and willingness of state-run utilities to work with independent power producers (IPPs). Usually, state-run entities are reluctant to become involved in CDM projects because of their unfamiliarity with the Mechanism, lack of an incentive to earn extra profit because of the regulated nature of their tariff structure and profit margins, and the complications these entities have with proving regulatory and financial additionality. Therefore, it is only the IPPs that can successfully promote CDM activities; if the country prohibits or limits IPP involvement in generation, then renewable energy CDM projects will usually not succeed in that country.
