Taking CDM beyond China and India

The CDM has performed well with more than 2500 registered projects and an investment of US $ 106 billion likely to generate 1.84 billion CERs before the end of the First Commitment Period with expected revenues in excess of $30 billion. But there is an enormous imbalance in the geographical distribution of projects with 83% of the projects being hosted by just seven countries of which also China and India alone account for about three fourth. Attempts by the Nairobi Framework to address this deep flaw by building capacity, reducing costs and time and improving information sharing and interagency coordination is yet to yield results and can, at best, bring only small incremental relief because they address issues that are peripheral to the core problem of poor and corrupt governance in many developing countries presenting unacceptably high political and sovereign risks to foreign direct investments.