The Clean Development Mechanism (CDM) was created under the Kyoto Protocol to enable developing countries to sell carbon credits to developed countries. According to this ‘Inside story on climate compatible development’ by the Climate and Development Knowledge Network, China’s extraordinary embrace of the market opportunities afforded by the CDM has provided the country with valuable experience in carbon markets, allowing it to develop and test appropriate systems. This brief notes that China was initially considered ‘slow off the mark’ in engaging with the CDM, although the country now dominates the CDM market with almost half of all CDM projects hosted in China. Moreover, climate change action is becoming mainstream; carbon intensity reduction goals have been included in the most recent 5-year plan and a nationwide emissions trading scheme is also due to begin operating in 2015.
This summary was prepared by Eldis.
China’s energy demand has been growing at breathtaking pace putting pressure on the security of the country’s electricity supply, 70 per cent of which is based on coal.
Countries pursuing low-emission development strategies (LEDS) aim to grow their economy while reducing greenhouse gas emissions, increasing resilience to climate change impacts, and achieving social development and environmental goals.
This report seeks to document international best practices in adopting green growth strategies. It explores why some countries decide to pursue a green growth path and how they transition to such a pathway.