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Toward an effective implementation of clean development mechanism projects in China

  • Zhang, ZhongXiang

With the already huge and growing amount of greenhouse gas emissions and a great deal of low-cost abatement options available, China is widely expected as the world’s number one host country of clean development mechanism (CDM) projects. But, making this potential a reality represents a significant challenge for China, because there has been a general lack of awareness by both the Chinese government and business communities, clear institutional structure, and implementation strategy. This has raised great concern about China’s ability to compete internationally for CDM projects and exploit fully its CDM potential. This paper aims to address how CDM projects will be effectively implemented in China by examining the major CDM capacity building projects in China with bilateral and multilateral donors, the treatment of low-cost, non-priority CDM projects, and how a system for application, approval and implementation of CDM projects is set up in China and what roles the main institutional actors are going to play in the system. We conclude that these capacity building assistances, the establishment of streamlined and transparent CDM procedures and sound governance, and the lessons learned and experience gained from the implementation of the CDM project in Inner Mongolia and the two Prototype Carbon Fund (PCF)’ projects will help China to take advantage of CDM opportunities. Moreover, in order to further capitalize on its CDM potential, there is a pressing need for the Chinese government to amend its current interim CDM regulations, in particular those controversial provisions on the eligibility to participate in CDM projects in China and the distribution of the revenues derived from CDM project between the project developer and the Chinese government. We believe that taking these capacity building projects and the recommended actions to clearly define the sustainable development objective of the CDM and disseminate CDM knowledge to local authorities and project developer

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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 34 (2006)
Issue (Month): 18 (December)
Pages: 3691-3701

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Handle: RePEc:eee:enepol:v:34:y:2006:i:18:p:3691-3701
Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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  1. Zhang, ZhongXiang, 2004. "Meeting the Kyoto targets: the importance of developing country participation," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 3-19, January.
  2. Zhang, ZhongXiang, 2004. "The World Bank's prototype carbon fund and China," MPRA Paper 13222, University Library of Munich, Germany, revised Dec 2005.
  3. ZhongXiang Zhang, 2000. "Estimating the size of the potential market for the Kyoto flexibility mechanisms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(3), pages 491-521, 09.
  4. Franck Lecocq & Karan Capoor, . "State and Trends of the Carbon Market 2005," World Bank Other Operational Studies 13410, The World Bank.
  5. Franck Lecocq & Karan Capoor, . "State and Trends of the Carbon Market 2003," World Bank Other Operational Studies 13416, The World Bank.
  6. Zhang, ZhongXiang, 1999. "Estimating the size of the potential market for all three flexibility mechanisms under the Kyoto Protocol," MPRA Paper 13088, University Library of Munich, Germany.
  7. repec:wbk:wboper:13411 is not listed on IDEAS
  8. Zhang, ZhongXiang, 2000. "An assessment of the EU proposal for ceilings on the use of Kyoto flexibility mechanisms," MPRA Paper 13151, University Library of Munich, Germany.
  9. repec:cup:cbooks:9780521029018 is not listed on IDEAS
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