COP18 - CDM Policy Dialogue: Ministerial Dialogue about the role of market mechanisms under UNFCCC
The ministerial dialogue was attended by Ministers from seven countries (EU, Japan, South Africa, Australia, China, Germany, and Grenada, along with two representatives from private sector (C-Quest Capita and Climate Capital) and Ms Joan MacNaughton (CDM Policy Dialogue Panel Vice-Chair). The event was moderated by Lord Nicholas Stern. The purpose of the Ministerial Dialogue was to share ideas and views about if and how market mechanisms have a role under UNFCCC. In the discussions there appeared a broad agreement among the ministers on the role of markets mechanisms in general and CDM in particular in the future climate regime. The newly developing regional and national schemes were recognized as a positive step forward. The role of CDM for linking these schemes and to act as a common accounting method (to avoid double counting) was acknowledged. However, the need to bridge the supply demand imbalance was categorically stated as a stumbling block for effective markets. Further, concerns were raised on the skewed regional distribution and need for a strict review of CDM by EB was recognized by the ministers. The private players in their presentations drew attention towards the effect of a crumbling market on the capacity developed over the past decade in developing countries and suggested need for some financial support (as a CDM fund) and signal from COP 18 to reaffirm market faith in the mechanism.