Following the general lack of demand for CERs and the price drop, the situation of CDM project activities has noticeably deteriorated. With this changed market conditions, many projects might go unimplemented or even be shut down. Projects might also be modified in a way that they no longer comply with CDM standards. The changed market conditions have however hit host countries, as well as project and technology types, to different degrees and potentially triggered different reactions.
Based on a representative sample the study evaluates the current status of CDM projects globally and analyses barriers as well as possibilities for supporting the continuation of the projects. The research finds that there is a high risk of the loss of mitigation activity for many projects. The results demonstrate a strong need for both broader and targeted support for the continuation of mitigation activities under the CDM, and highlight areas where such support may have the greatest impact.
The research was conducted by NewClimate Institute and Ecofys on behalf of the German Federal Ministry for Environment, Nature Conservation, Building and Nuclear Safety (BMUB).