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‘Case’ Studies: Cdm And Emissions Trading

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Chapter Summary

This chapter attempts to identify some criteria that need to be in place for a climate measure to promote sustainable development according to the sustainability test. It in turn looks at the clean development mechanism (CDM) and emissions trading scheme. In the case of conflicts with multilateral trade norms, the ability of the CDM to serve as an instrument of sustainable development will be decisive. In this context, the exclusion of non-Member States and their legal entities to participate in the CDM will have to relate to the sustainable integrity of the CDM. When assessing a possible trade-discriminative effect of emissions trading under the sustainability test, the main question is whether emissions trading as a tool to implement mitigation obligations promotes sustainable development. An emissions trading scheme has been recognized as the most cost-effective and efficient market-based measure to attain emissions reductions.

Keywords: clean development mechanism (CDM); climate measure; emissions trading; sustainable development



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