ABSTRACT
The Clean Development Mechanism (CDM) has become a significant instrument for financing global technology transfer aimed at reducing greenhouse gas (GHG) emissions (e.g. Seres, 2008). The scheme emerged out of the Kyoto Protocol negotiations as a way of satisfying two policy goals: providing developed countries with access to the most cost-effective emission reductions (a key focus of the US negotiation position); and increasing developed country financial support for development efforts (a key objective for many developing countries, led by Brazil) (Disch, 2010). Article 12 of the Kyoto Protocol describes the twin objectives of the CDM as to assist developing countries ‘in achieving sustainable development and in contributing to the ultimate objective of the Convention’ (UNFCCC, 1998, 12.2, p11), where the ‘ultimate objective’ is preventing ‘dangerous anthropogenic interference with the climate system’ (UNFCCC, 1992, 2, p5). Thus, the achievement of sustainable development (SD) benefits for host countries is enshrined as a key objective in the founding legal document of the CDM, alongside enabling developed countries to achieve part of their emission reduction targets at lower costs by purchasing Certified Emissions Reductions (CERs) from CDM projects. However, the CDM has been criticized for failing to deliver both sufficient technology transfer and SD benefits (e.g. Forsyth, 2007).
