The proposal is a good attempt to save CDM, which in the past years has lost debate space to other mechanisms (e.g. loss and damage, and REDD+), and has barely reached ADP discussions. But the proposal is already being deeply criticized by other countries, in particular the European Union. The expression “double-counting” of CERs in different markets was continuously used during this week negotiations, in a clear reference to the Brazilian proposal for after 2020. While the double-counting language was not included in the final CMP decision regarding CDM due to lack of agreement, the issue will continue to underline future discussions as Parties move on to a new international agreement.
As previously debated in this blog, the future of CDM remains greatly uncertain. To try to tackle this uncertainty, Brazil has submitted a proposal for an Enhanced Clean Development Mechanism, or CDM+. The proposal, submitted to the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP), is a response to the new market-based mechanism requested in decision 2/COP 17.
Brazil has great interest that CDM continues under the new international framework. Besides being one of the countries that most benefited from CDM projects during the first commitment period of the Kyoto Protocol, Brazil already has in place the necessary institutions and knowledge to enable even more CDM projects. Thus, proposing that the new market-based mechanism be similar to the well-known CDM does not come as a surprise. But one particular aspect is different under the new proposal: the possibility of voluntary cancelled CERs still be accounted towards countries’ nationally determined contributions (NDC) financial targets and pledges.