Host Country Institutional Barriers

Institutional support for the Clean Development Mechanism (CDM) and renewable energy in general within host countries varies. Point Carbon prioritizes the ease with which CDM projects can be implemented in a variety of developing countries for prospective investors [1]. This grading procedure is determined by the country’s climate institutions, project status and potential, and investment climate. The German Office of Foreign Trade does a similar analysis for Latin America and shows Chile, Mexico and Brazil as being the most desirable countries because of solid economic indicators, low corruption and well-run Designated National Authority (DNA) offices that are open and accessible [2]. ¹ Table 6.1 Point Carbon's international CDM host country rating

Country	Rating
China	A-
India	A-
Chile	BBB
Mexico	BBB
Brazil	BB+
South Africa	BB+
Malaysia	BB+
Korea	BB+
Peru	BB
Morocco	BB-
Indonesia	BB-
Argentina	B
Vietnam	B
Philippines	B
Egypt	CCC
Thailand	CCC

Source: Point Carbon (2007) ‘CDM host country rating’, December, available from https://www.pointcarbon.com" xmlns:xlink="https://www.w3.org/1999/xlink">www.pointcarbon.com Table 6.2 Latin America's top rated countries for CDM investment rated by the German Office of Foreign Trade

Country	Rating
Chile	91.8
Mexico	88.8
Brazil	85.0
Peru	79.3

Source: Umann, U. (2007) ‘CDM Investment Climate Index: Regional comparison’, German Office for Foreign Trade and Deutsche Investitions, August