Given the dismal state of carbon markets currently, it is baffling that there is a push to expand them to the African continent; yesterday the Africa Carbon Forum opened in Addis Ababa and next week there is a two day capacity building workshop in Lilongwe (Malawi) entitled Making carbon markets work for the poor.

Furthermore, as the case studies show in the newly released report, The CDM in Africa Cannot Deliver the Money, Africa's experience with the CDM has been anything but positive. Rather than supporting innovative projects that provide clean energy to those with limited or no access to energy, poor communities are often displaced, exposed to harmful conditions and lose their livelihoods in the name of climate action and sustainable development. Project types highlighted in the report include a landfill, gas capture projects and large hydroelectric dams. Hardly the image that the UNFCCC likes to have the CDM associated with.

Wastepickers protest CDM-funded incinerator in Delhi

The UNFCCC Secretariat along with the International Emissions Trading Association (IETA) organized an event at the European Parliament so that beneficiaries of the Clean Development Mechanism (CDM) could meet Members of the European Parliament (MEPs). Just who are these beneficiaries?

In Durban at COP 17, Parties agreed to conduct a work programme to consider a framework for various approaches, including opportunities for markets. Parties also defined a new market mechanism and established a work programme to elaborate the modalities and procedures with a view to a decision in December in Qatar at COP 18.

My colleague, Barbara Haya from the University of California's Energy Resources Group and I took a closer look at the additionality and sustainability of hydropower projects, since hydropower projects are the the most prevalent project type in the CDM pipeline and are expected to generate 20% of all certified emission reductions (CERs, i.e. carbon credits) by 2012.

Last month in Durban a second commitment period of the Kyoto Protocol was agreed to, an end date (December 2012) to the AWG-LCA negotiating track was set and a new negotiating track, the Durban Platform was launched. Read my previous blog for my take on what transpired there. Specifically what impact does the outcome in Durban have on carbon markets?

Durban Debacle

Thirty-six hours after the climate change conference countries agreed to a weak agreement that is lacking in ambition, equity and justice. While a second commitment period of the Kyoto Protocol has been agreed to, three major polluters Japan, Canada and Russia (and of course the United States) are not participating, the targets are much lower than what science demands, and there are a number of loopholes that essentially negate the targets. Forestry management rules are akin to cooking the books, and dealing with surplus AAUs has been punted to next year. It is not yet clear whether the commitment period is 5 years or 8 years long.

Wastepickers teach delegates how to manage trash in a climate friendly manner.

Unlike other UN Climate Conferences there have been very few creative actions; in large part due to the fact that actions are permitted in two small areas and UN police are harassing observers for handing out flyers!

Nevertheless there have been two great actions against dirty Clean Development Mechanism (CDM) project types, incineration and coal. Yesterday, wastepickers that belong to the Global Alliance for Incinerator Alternatives (GAIA) staged a vibrant action. They demonstrated the important work they do of separating trash at its source while singing songs of resistance to dirty incinerator projects that destroy their livelihoods. They also called for a Green Climate Fund that has direct community access.

ICC: Site of Durban climate talks

The first week of the negotiations in Durban at the UN Climate talks are over, so it is a good time to take stock of new developments in the negotiations as they relate to the Clean Development Mechanism (CDM) and new market mechanisms. It's been a busy week, since issues related to the CDM are discussed under the Kyoto Protocol negotiating track, as well as two technical wings, Subsidiary Body for Implementation (SBI) and and Subsidiary Body for Scientific and Technological Advice (SBSTA). New market mechanisms are discussed under the Long-term Cooperative Action (LCA) track.

The Clean Development Mechanism's (CDM) 65th Executive Board meeting come to a close last Friday in Durban. I provide a run down of some key issues based on the official report of the meeting and accounts from colleagues who attended the meeting.

Coal Methodology suspended

The CDM Executive Board decided earlier this evening at its 65th meeting in Durban to immediately suspend ACM-0013, the methodology applied to coal plants to calculate emission reductions. While this suspension doesn't impact the six coal projects that are already registered, only projects that request registration within four weeks from today do not have to wait for the revised methodology. You can read more about the coal methodology here.

Tata Mundra Plant in Gujarat, India applying for CDM Registration

This month has been tough for supporters of offset credits from coal-fired power plants. First a study from the Stockholm Environment Institute was released that questioned the additionality of coal-fired power plants under the CDM and finds that the crediting methodology used for coal plants (ACM0013) inflates credits generated by 71%.

The second half of the climate negotiations that ended in Panama on Friday saw little movement on issues related to the CDM and future market-based mechanisms.

Photo credit: James Dawson, UNFCCC

Discussions on the CDM and use of markets during the latest round of climate negotiations in Panama rehashed well established positions of various negotiating blocks.

Panama City: Site of current round of climate talks

The gulf in views regarding the future of the Kyoto Protocol and the Clean Development Mechanism between developed and developing country Parties was evident during the first two days of climate negotiations, which began in Panama on Saturday.

Developing country blocks including the African Group, the Least Developed Countries, the Alliance of Small Island States, and the Arab Group stressed the importance of agreeing to a second commitment period.

European Commission President Barroso's speech at the Leaders' High Level Dialogue on Climate Change at the UN last week ruffled some feathers. He was ambivalent about a second commitment period of the Kyoto Protocol, making it contingent on new market mechanisms and the commitment of other major emitters commiting to "doing their fair share."

I know that the copious number of readers of my blog have been anxiously awaiting the follow up to my previous blog, Wikileaks Meets Carbon Trading. I had promised a more in-depth analyses of why it is so easy to game the CDM.  I still haven't gotten around to it, but my colleagues that also partake in "CDM-spotting" have.  Check out these great blogs, press releases and newsletters:

Last week Wikileaks released a cable the American Consulate in Mumbai sent to the Secretary of State in July 2008 summarizing a meeting that the Consulate's Office and the US Governmental Accountability Office (GAO) had with Indian industrialists regarding their views and experience with the CDM.

On my webpage I have added a new section Media. There you will find press articles where I have been quoted or my work cited, as well as articles written by me that have appeared in publications.

Last week my guest commentary on the CDM Executive Board's non-decision to fix the coal methodology appeared in the CDM/JI Monitor. 

The Clean Development Mechanism's 62nd Executive Board meeting came to a close last Friday in Marrakech. On a number of key issues, the Board punted decision making to the next meeting. Below is a summary of the outcomes of the meeting that are likely to be of interest to civil society.

Koutoubia Mosque in Marrakech

The sixty-second meeting of the Executive Board of the  Clean Development Mechanism (CDM) begins this week in Marrakech, Morocco. Besides discussing whether to approve specific projects, a number of policy and technical issues are also on the docket.  Below is a summary of the issues that are of interest to civil society.

The Board is considering the approval of the controversial Aguan biogas project in Honduras.  Security forces hired by the project developer allegedly killed five people from the local community. Even EDF Trader, the company that had planned to purchase carbon credits from the project, pulled out, as it did not want to be linked to such a problematic project.

In addition to ensuring emissions reductions, the CDM's oft-forgotten other goal is to promote sustainable development. A project associated with human rights abuses can hardly be considered to promote sustainable development.

Martim Hotel - Site of UN Climate Negotiations in Bonn

The climate talks are wrapping up here in Bonn, so it is a good time to look back at what happened in discussions around the CDM and new market-based mechanisms.

Unfortunately the CDM EB has done a terrible job of ensuring sustainable development criteria. This is part due to the fact that host countries are tasked with assessing sustainable development criteria - yet host countries have an inherent conflict of interest. Enforcing strict sustainability criteria would mean fewer CDM projects and thus, less foreign investment. The other problem is that no tangible guidelines or criteria that all host countries agree to adhere to have been developed for ensuring sustainable development.

Will the CDM EB do the right thing and send a clear signal that there is not room for projects that harm local communities in the CDM?

Linkage between energy access and wealth

The link between access to energy and wealth is well established (see figure). There are 1.6 billion people in the world that have no access to electricity and another two billion that have intermittent access.  It is extremely important that energy poverty, climate mitigation and sustainable development are solved equitably and fairly. Going carbon free without distributiing energy access is a non-starter.

Menschenstrom gegen Atomstrom Demo (Foto: Jan Derrer, TA)

Gestern sind 20,000 Leute friedlich nach Beznau Atomkraftwerk in Kleindöttingen marschiert, um ihr Zeichen gegen Energie von Atomkraft zu geben.  Das Volk weisst, dass Atomkraft nie 100% sicher wird und das Risiko viel zu hoch ist.   Wenn es einen Unfall gäbe, leidet die Bevölkerung und ein grösseres Gebiet der Schweiz müsste als kontaminiert und unbewohnbar aufgegeben.

Heute vormittag haben Aktivistinnen von dem AKW-ADE Camp einen offenen Brief,  an die Aktionäre der BKW vor der Generalversammlung verteilt. Unten können Sie den Text des Briefes (geschrieben von mir) lesen:

Sehr geehrte Aktionärinnen und Aktionäre der BKW

Sicherlich möchten Sie Ihr Geld so anlegen, dass es höchst gewinnversprechend für Sie ist. Leider ist eine Investition in das AKW Mühleberg eine Fehlinvestition.

Up to 80% of the world's energy demand could be met by renewables with already existing technologies by 2050 according to a new report released by the Intergovernmental Panel on Climate Change (IPCC) earlier this week.

Furthermore, the shift to renewables is expected to accelerate access to energy for over 2 billion people worldwide, who have little to no access to electricity. In part, this is due to the fact that renewable energy is better suited to decentralized production than conventional energy sources. Other advantages include a more secure energy supply, much lower greenhouse gas emissions and improved air quality.