The implementation of renewable electricity CDM projects in the South Mediterranean basin: benefits, barriers and prospects

摘要

This paper shows how Clean Development Mechanism (CDM) projects in renewable electricity (RE-CDM projects) may contribute to the economic, social and environmental sustainability of countries in the South Mediterranean basin. It also shows that several barriers to the implementation of these projects stand in the way, however, including low CER prices, competition from cheaper CDM projects, risks and transaction costs linked to the weak institutional capacity of host countries, an unattractive investment climate, difficulties in proving the additionality of projects and unfavourable baselines. The relatively weaker CDM institutional capacity of South and Eastern Mediterranean Countries (SEMCs) is probably the most important factor negatively affecting the attractiveness to invest in these projects compared to other locations. Countries should analyse the extent to which they can profit from them and act accordingly.