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Storm in a teacup? How a gap between Kyoto commitment periods could affect CDM and JI

11 Aug 2010 16:36
In a recent document, the UNFCCC Secretariat outlines how a gap between the first and second Kyoto commitment period can emerge, the implications for CDM and JI, and ways to bridge the gap. But how real is the risk? We think the risk for a gap is clear, that the CDM has a fairly sound legal basis post-2012 despite this, and that demand for CERs is based just as much on domestic legislation as the Kyoto Protocol. However, the Secretariat note’s unclear wording on CDM has given countries on the demand side a negotiation chip they seem increasingly intent to use.

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