This report is an output of a European Commission funded project called IRIS Kyoto. The objective of this project is to reveal innovative risk coverage instruments and clarify financing of projects related to the implementation of the Clean Development Mechanism (CDM) focussing specifically on India and Morocco.
The IRIS Kyoto project addresses important project development and financing barriers to the successful implementation of the CDM as presently proposed in the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC), building a practical methodology for bringing forward and implementing real CDM projects.
The project team, representing an international consortium of experts, believes that the actual development of projects under the CDM faces major bottlenecks, particularly in relation to the level of risk (of various types), that need to be removed all involved players. In addition, the project team believes that these underlying financial, political, and other risks, and market and non-market barriers reinforce the perceived risks of doing business in emerging markets, on the one hand, and add further to the difficulties in financing of clean technology projects, on the other.
In short, the team believes that, for the CDM to work, even more attention must be paid by national leaders, international donors and others to reducing risk than is paid for conventional investments. Without this attention, and without both national and international financial intermediation to reduce risk, the CDM will not become an instrument to promote investment in clean technologies that was anticipated in Kyoto in 1997.
Please download pdf file here
|
