The flexible mechanism known as Clean Development Mechanism (CDM) has a built-in mechanism for failure. It systematically favours energy-supply over efficiency improvements. Small luck that it is renewable supply. Remember the recent words from the CEO of Shell: "What is the point of producing ever more energy if we continue to waste most of it"?
In a study presented to UNIDO, it is shown that out of 563 registered CDM projects, only 3% (19) are dealing with end-use energy efficiency. The rest are variations on the theme of renewable and improved supply. To further put emphasis on how limited the use of CDM-financing is to promote energy efficiency globally, the majority of these 19 projects are in India. Good, but after all, India is one of the developing economies that are better equipped than many others to deal with energy economics. So, instead of making better use of the limited resources we have in the world, we are eagerly supplying more energy to waste!
Well, there might be hope. The problem has been identified and people in the World Bank staff are arguing for making use of CDM-resources to finance lighting projects. There are certainly problems with verification and many other things that have to be considered to prevent double-counting or delivery of "hot air", but there also simply has to be a solution, also!
We need the CDM as a mechanism for developing countries to "leap-frog" from bad technology to good, but we also need to make this where it makes the best use of resources overall.Log in to post comments