The Journal of Environment & Development current issue

Varieties of Carbon Governance in Newly Industrializing Countries

Fuhr, H., Lederer, M. — Wed, 18 Nov 2009 20:16:03 PST

Recently established carbon governance systems are quite different in Brazil, China, and India. Such divergence is surprising as emerging economies are primarily involved in carbon governance through the clean development mechanism (CDM). One would expect similar institutional and policy outcomes in the major host countries in response to the CDM, as this market instrument is initiated primarily by Western companies and regulated hierarchically by the internationally governed CDM Executive Board. However, from a closer look at the developing features of the CDM markets in Brazil, China, or India and an analysis of dominant actors and their interactions, institutional responses, and the effectiveness of the CDM within each market, there is evidence of a high variance, combined with a strong ownership by the respective governments. Such a variety of carbon governance is interesting from a theoretical point of view as it shows that a good understanding of environmental governance patterns is still lacking in developing and emerging economies. It is also of political importance as the findings may help to diffuse some of the criticism leveled at the CDM.

Varieties of Carbon Governance: Taking Stock of the Local Carbon Market in India

Benecke, G. — Wed, 18 Nov 2009 20:16:03 PST

Judged by the sheer number of clean development mechanism (CDM) projects registered and in the pipeline, India undoubtedly can be seen as a success story as far as the functioning of the local carbon market is concerned. However, questions are repeatedly raised about the efficient working of the CDM, its distributional quality, its effectiveness in meeting broader societal goals, its impacts on sustainable development, to name but a few.This calls for a careful scrutiny and understanding of how exactly carbon governance works in the specific case of India. As demonstrated in the article, India presents a case of market-dominated carbon governance taking place under a weak shadow of hierarchy and with little civil society involvement. This article derives at the overall conclusion that the specific trajectories characterizing the local Indian carbon market point toward globally diverging carbon governance.

Varieties of Carbon Governance: Utilizing the Clean Development Mechanism for Chinese Priorities

Schroeder, M. — Wed, 18 Nov 2009 20:16:03 PST

The Clean Development Mechanism (CDM) is a market mechanism that was created by an international regime, but its successful implementation relies on effective CDM governance within its host countries. What kinds of carbon governance patterns are appropriate for reaching the goals of the Kyoto Protocol? Taking China—the leading CDM host country worldwide—as a case study, this article examines the patterns of Chinese carbon governance. The hypothesis brought forward is that the Chinese government is apt in utilizing the international market mechanism CDM for its own priorities by adding own national requirements. The dominating carbon governance pattern is state regulation, while private actors from the business community and from civil society play only a minor role. The article concludes by discussing the implications of the Chinese variety of carbon governance for the post-2012 climate regime.

Varieties of Carbon Governance: The Clean Development Mechanism in Brazil--a Success Story Challenged

Friberg, L. — Wed, 18 Nov 2009 20:16:03 PST

This article analyzes the interaction between stakeholders in the clean development mechanism (CDM) in Brazil and assesses the impacts this market mechanism has had on institutions and on the climate change policy discourse in Brazil. Brazil ranks as the third largest host country for CDM projects, even though it has maintained a strong commitment to the environmental integrity of the CDM system. Despite its positive experience with the CDM, the government is opposing the inclusion of tradable carbon credits for reduced deforestation in the post-2012 climate regime.The main benefits of the CDM for Brazil have been its contribution to diversifying the energy system and to creating human and institutional capacity for carbon governance. These are important assets as Brazil develops its own national policies to tackle climate change.

Varieties of CDM Governance: Some Reflections

Newell, P. — Wed, 18 Nov 2009 20:16:03 PST

This overview discusses a series of themes critical to understanding the governance of clean development that cut across each of the case studies showcased in this special issue. Firstly, the question of who draws the boundaries around what is to be governed, what is not, and by whom, where each of the contributions highlight conflicts over which projects and sectors should be part of the CDM and which actors should be charged with their management. Secondly, how we define and what we mean by governance, where I argue for a broader notion of governance that adequately captures the range of governing functions exercised by the plurality of state and non-state actors in this domain. Thirdly, each of themes relates to the question of power: power to define what is and is not clean and sustainable development; the power that determines which countries are able to steer CDM investments toward sectors aligned with their overall development priorities, and the combinations of public and private power that demonstrate as well as explain the varieties of carbon governance documented in this special issue. My argument is that the observed diversity of carbon governance reflects differences in governance in general in those countries. It is impossible politically, and unhelpful conceptually, to attempt to understand carbon and clean development governance without reference to the broader political-economic context in which it is embedded and which it seeks to transform. But whether it is in the area of energy, waste, or forests, CDM governance is incorporated within and predated by political structures, institutions, conflicts, and interests that shape the amenability of a sector and country to pressures toward convergence, standardization, and universalization.

Clean Development Mechanism and Least Developed Countries: Changing the Rules for Greater Participation

De Lopez, T., Tin, P., Iyadomi, K., Santos, S., McIntosh, B. — Wed, 18 Nov 2009 20:16:03 PST

The clean development mechanism (CDM) of the Kyoto Protocol is designed not only to mitigate greenhouse gas emissions (GHG) but also to contribute locally to sustainable development. As a market-based mechanism, CDM has the potential to channel private investments into development activities with economic, social, and environmental benefits. Unfortunately, investments have tended to flow where CDM activities provide higher returns with limited economic and political risks, that is, outside of least developed countries (LDCs).To date, only a handful of LDCs have been able to participate in the CDM. This article discusses opportunities for modifying the CDM rules to provide more opportunities for LDCs. Regulatory reforms, technical assistance programs, and direct registration and certification of CDM activities in LDCs by the UNFCCC Secretariat may help foster CDM activities in LDCs . As negotiations regarding the post-2012 climate regime are afoot, an overhaul of the CDM toward a mechanism more friendly to LDCs is necessary.