Search

This article describes the Clean Development Mechanism (CDM) policy of India, provides estimates of potential for a few sectors, and voices India's concern about the CDM. In particular it covers the problems of determining CDM baseline, transaction costs, and risks that have to be borne by the developing countries and determining a fair price for carbon dioxide (CO2). It argues for more effective technology transfer and points out that, if interpreted incorrectly, CDM rules can discourage climate-friendly policies in developing countries. It suggests that the developing countries should learn how to play the CDM game in order to secure better deals. [ABSTRACT FROM AUTHOR]

Climate change does not yet feature prominently within the environmental or economic policy agendas of developing countries. Yet evidence shows that some of the most adverse effects of climate change will be in developing countries, where populations are most vulnerable and least likely to easily adapt to climate change, and that climate change will affect the potential for development in these countries. Some synergies already exist between climate change policies and the sustainable development agenda in developing countries, such as energy efficiency, renewable energy, transport and sustainable land-use policies. Despite limited attention from policy-makers to date, climate change policies could have significant ancillary benefits for the local environment. The reverse is also true as local and national policies to address congestion, air quality, access to energy services and energy diversity may also limit GHG emissions. Nevertheless there could be significant trade-offs associated with deeper levels of mitigation in some countries, for example where developing countries are dependent on indigenous coal and may be required to switch to cleaner yet more expensive fuels to limit emissions. The distributional impacts of such policies are an important determinant of their feasibility and need to be considered up-front. It follows that future agreements on mitigation and adaptation under the convention will need to recognise the diverse situations of developing countries with respect to their level of economic development, their vulnerability to climate change and their ability to adapt or mitigate. Recognition of how climate change is likely to influence other development priorities may be a first step toward building cost-effective strategies and integrated, institutional capacity in developing countries to respond to climate change. Opportunities may also exist in developing countries to use regional economic organisations to assist in the design of integrated responses and to exploit synergies between climate change and other policies such as those designed to combat desertification and preserve biodiversity. [Copyright &y& Elsevier]