Developers Seek to Sell Controversial Offsets Through UN Mechanism
Developers are attempting to sell offsets from hundreds of controversial projects through a revamped United Nations mechanism, raising concerns that these credits will enable companies and countries to continue polluting. Renewable energy investments make up four-fifths of all projects seeking a transfer from the old Clean Development Mechanism (CDM) to the new system under Article 6.4 of the Paris Agreement.
Sustainable Development Goals (SDGs)
- Goal 7: Affordable and Clean Energy
- Goal 13: Climate Action
- Goal 16: Peace, Justice, and Strong Institutions
Background
The UN’s CDM, established in 1997 by the Kyoto Protocol, allowed rich countries to meet some of their climate obligations by financing emission-cutting projects in poorer countries. However, the CDM has faced widespread criticism for its human rights record and failure to deliver promised climate benefits. A new mechanism is currently being developed under Article 6.4 of the Paris Agreement to replace the CDM.
Renewable Energy Projects Dominate Transition Requests
Renewable energy projects make up the majority of projects seeking transition to the new mechanism. However, experts argue that these projects often do not provide additional emissions reductions as they are already the cheapest sources of power in most countries. Some renewable energy projects have also been accused of human rights violations, such as forced evictions for the construction of large dams.
Concerns over Credibility and Additionality
Experts warn that the large supply of low-quality offsets from renewable energy projects could undermine the credibility of the new mechanism. These credits are unlikely to be additional, meaning they do not bring any additional climate benefit beyond what countries would do anyway without carbon finance. Hydropower projects, in particular, raise concerns due to their potential human rights impacts and the questionable additionality of their credits.
Authorization Dilemma for Countries
While projects have requested transition to the new mechanism, they still require formal authorization from the countries where they are located. Governments have until 2025 to make a decision, and it is expected to be a complex process. Large countries such as China, India, and Brazil host the majority of projects seeking transition.
Market Outlook and Potential Buyers
The trading of offsets under the new mechanism has not yet begun, and negotiations on technical issues are ongoing. The interest in purchasing these credits remains uncertain. While countries may not show much appetite for purchasing credits, polluting companies could be potential buyers. The transparency of the system will play a crucial role in determining buyer behavior and the credibility of the credits.
SDGs, Targets, and Indicators
SDGs Addressed or Connected to the Issues Highlighted in the Article
- SDG 7: Affordable and Clean Energy
- SDG 13: Climate Action
- SDG 16: Peace, Justice, and Strong Institutions
Specific Targets Under the SDGs Based on the Article’s Content
- SDG 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.
- SDG 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all.
Indicators Mentioned or Implied in the Article
- Share of renewable energy in the global energy mix
- Incorporation of climate change measures into national policies
- Promotion of the rule of law and equal access to justice
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. | Share of renewable energy in the global energy mix |
| SDG 13: Climate Action | 13.2: Integrate climate change measures into national policies, strategies, and planning. | Incorporation of climate change measures into national policies |
| SDG 16: Peace, Justice, and Strong Institutions | 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all. | Promotion of the rule of law and equal access to justice |
Explanation:
1. The article discusses renewable energy projects and their potential impact on the global energy mix, which aligns with SDG 7’s target of increasing the share of renewable energy.
2. The article highlights the need to integrate climate change measures into national policies, which corresponds to SDG 13’s target of incorporating climate change measures into national strategies and planning.
3. The article mentions concerns about human rights violations and the need for equal access to justice, which relates to SDG 16’s target of promoting the rule of law and ensuring equal access to justice for all.
The identified indicators are implied in the article’s content. The share of renewable energy in the global energy mix can be measured to track progress towards SDG 7.2. The incorporation of climate change measures into national policies can be assessed through policy analysis and evaluation. The promotion of the rule of law and equal access to justice can be measured through indicators such as legal frameworks, access to legal services, and human rights assessments.
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Source: climatechangenews.com
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