World Bank calls for renewed carbon trading rules

While fully affirming the positive role of the CDM, it also acknowledges that there are problems in the process of approval, evaluation of benefits and so on, and believes that achieving a 2012-year agreement on emissions reduction as soon as possible is crucial to the healthy development of the market Ruidan from Copenhagen, Carbon Finance (Carbon Finance) This term has a history of more than 10 years.　　Under the framework of the Kyoto Protocol, a well-known flexible mechanism ————— clean development mechanism (CDM) has become an indispensable part of the carbon trading market. On the afternoon of December 8 local time, the World Bank said in a report that the role of CDM was affirmed.　　In this way, the rich world has played a pivotal role in reducing carbon dioxide emissions by buying emissions from environmentally friendly projects in developing countries, the report said. In this decade of experience in carbon finance: Carbon market development and mitigation of greenhouse gas emissions in the report, the bank noted that, as a very important tool, the clean development mechanism in the field of Low-carbon investment, the use of its leverage, the private sector has brought good opportunities for the emergence of a large number of clean technology,　　and accelerated the spread of these technologies among countries. For example, through a decade of development, the bank now has 10 related funds with a total financing amount of more than 2.5 billion dollars.　　The funds provide funding for the world's climate-constrained countries and regions, respectively, for different mitigation projects.　　The clean development Mechanism has created a large number of projects such as carbon sinks, energy efficiency improvements and renewable energy, which have created significant financing opportunities for developing countries, including China. However, Woren Evans, the World Bank's environment director, admits that for now, the size and source of funding for carbon finance projects still need to be expanded to meet the development needs of the current carbon market.　　In the past ten years, the mechanism has gradually exposed its lagging side, which needs to be optimized in the future. One of the most important is the uncertainty over whether the new agreement will be reached as soon as 2012 years after the expiration of the Kyoto Protocol's first commitment period. The report says that if the Kyoto Protocol fails, it could lead to a delay in the approval of a large number of CDM projects.　　In the absence of a strong international compact Framework to support the mechanism is still able to retain the eyes of a large number of investors, yet to be verified.　　The report cautioned that while the bank itself currently has some purchase agreements for emissions reductions, the scale of these projects is not enough to meet the "post-Kyoto" carbon market demand.　　Martina, the head of the report, also regrets that many buyers have withdrawn from the carbon trading market because they are deeply pessimistic about the outlook and have halted buying any carbon reduction projects related to the post-Kyoto period. In addition, the report argues that the overall benefits of some carbon-financed projects are underestimated and are the biggest obstacle to leveraging. In addition, there are some CDM projects that eventually producehas not been able to reduce carbon dioxide emissions as set out by its objectives, but has disproportionately negative effects on some particularly underdeveloped developing countries and regions.　　The report also points out that too much cumbersome and lengthy approval processes, as well as inadequate incentive policies, hinder the development of various CDM projects and discourage investors, making the number of projects that actually achieve real results low. "The principles of commitment to ' environmental protection ' and ' improved climate ' are inherent in carbon finance, whether for the whole climate or the carbon market. No additional conditions can change the purity of the project.　　"Martina said. The report suggested that the current carbon trading market needs to redefine the "rules of the game", through the improvement of evaluation standards, strengthen supervision, make the project more operational and substantive. And in the benign role of the market, CDM transaction costs will be reduced, so that more large-scale projects can be encouraged to enter, and ultimately to reduce greenhouse gas emissions play a more important role. This article comes from Hu Shuli our network