CDM host nations ask U.N. for power to ban projects
Gujarat Forum CDM
CDM host nations ask U.N. for power to ban projects
16 Mar 2012 07:17 PM
Developing countries will next week ask the U.N. if they can withdraw
approvals they have given to U.N. emission reduction projects if
evidence emerges that they harm the environment or breach human
rights.
On March 23, government officials from developing countries will ask
the U.N.’s climate secretariat for permission to ban Clean Development
Mechanism (CDM) projects that have already been registered, a move
that would in theory increase uncertainty for investors.
Under U.N. rules, developers of CDM projects must receive a letter of
approval (LoA) from countries hosting the schemes before the U.N. can
register them and award them carbon credits.
But the rules do not allow government departments handing out the
letters, known as designated national authorities (DNAs), to later
withdraw their consent after the scheme has started, a situation some
countries want rectified.
“DNAs are requesting for such a procedure to enable them to withdraw a
(letter of approval) in case of non-compliance of a project’s
sustainable development commitments,” said Lindiwe Chauke, who is head
of South Africa’s government agency responsible for approving CDM
projects.
“There is no recourse for projects that fail to comply with the
sustainable development commitments.”
Moves by host countries to have more control over registered CDM
projects on their territory comes against the backdrop of high-profile
campaigns over the last year by green groups to have three projects
blocked from earning carbon offsets under the Kyoto Protocol.
Colombia, which is home to a controversial reforestation project
accused of stealing land from local peasants, is said by NGO Human
Rights Watch to be one of the countries now seeking the right to
withdraw letters of approval for projects registered by the CDM Board.
No-one from Colombia’s DNA was able to comment at press time.
The CDM’s Executive Board, which does not have the power to rescind
previous registrations for projects, will discuss the views aired at a
meeting next week, said a spokesman for the UNFCCC.
“The next meeting of the CDM EB will discuss the matter next week and
it’s possible that U.N. climate talks at the end of the year will
decide on proposals to change the procedures for LoAs,” the spokesman
added.
The International Emissions Trading Association (IETA), the main
carbon trading lobby, said it respected the right of host countries to
block projects that had subsequently been proved to harm human rights
or the environment, but want a clear framework.
“IETA members wouldn’t support such projects, but we would want
governments in such cases to work in tandem with the Executive Board.
The right procedures need to be in place.”
However, one CDM investor said he was sceptical that host countries
would choose to withdraw approval for projects.
“Given the capacity of many DNAs, I’m wondering what would prompt them
to re-evaluate their original decision. They are usually overly busy
with new projects, never mind looking back into the past,” said Mark
Meyrick, head of carbon trading at Dutch utility Eneco.
Next week’s forum of CDM host countries comes as the Panamanian
government and the indigenous Ngobe-Bugle people meet to discuss their
objections to the Barro Blanco hydro project that was registered by
the CDM Executive Board last year.
Opponents of the scheme, which is part-funded by KfW and FMO, which
are state-owned banks in Germany and the Netherlands, claim that the
scheme will displace villagers and harm the local environment.
Panama’s government supports the CDM project as part of the country’s
modernisation drive, but green groups want foreign funding stopped for
the scheme and approval withdrawn.
“We call on the UNFCCC and the national authority to make sure that
the Environmental Impact Assessment of the Barro Blanco project is
thoroughly reviewed and the approval subsequently withdrawn,” said CDM
Watch.
Last year members of the European Parliament in Brussels called for a
“do not harm” assessment for U.N. credits that could be used by EU
governments or companies to address concerns that such schemes could
be damaging local communities.
By John McGarrity - john.mc...@thomsonreuters.com
London