Prospects for CDM in Post 2012 Carbon Markets: Discussion Paper

The paper examines the future role of the CDM as an instrument of carbon finance and explores the differences between the CDM and new emerging offset approaches. [...] 7 The Role of CDM and Offsets in Future Carbon Markets The paper will start with an exploration of the characterization and development of offset policies, followed by sections on the respective mentioned markets, a look at the barriers to CDM as the general multilateral offset standard, and, in closing an evaluation of the outlook for CD. [...] The 25% target may be revised downwards in reaction to the impacts of the Tohoku earthquake, indeed the Japanese government in its submission to the Ad Hoc Working Group on Long-term Cooperative Action under the Convention stated that after the earthquake the country “is now developing the Strategy for Energy and Environment which includes new energy policies from scratch and policies to tackle gl. [...] The Ministry of Economy, Trade and Industry (METI) is the main ministry responsible for energy policy and is seen as close to industry and the Keidanren (the Japan Business Federation); the Ministry of the Environment (MoE (J)) is responsible for climate policy and is seen as closer to academia and NGOs; and the Ministry of Foreign Affairs is responsible for bi- and multi-lateral climate and devel. [...] Rather than limit the use of the CDM in the initial years of the Scheme, the Government will continue to work with the international community on these proposals.”57 Though this specific manifestation of the position towards CERs did not end up in the final law, it is indicative of the general position of the Australian government.