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A two-track Clean Development Mechanism to improve incentives for sustainable development and offset production

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Authors:
Torvanger, A. and Tørnblad, S.H. Center for International Climate and Environmental Research – Oslo (CICERO), Norway,
Shrivastava, M., K., Pandey, N. The Energy Research Institute (TERI), India)

Abstract

The literature assessing the performance of the CDM shows that the mechanism is weak with regard to sustainable development and problematic with regard to offset production. One explanation for weak performance is the difficulty of combining sustainable development with offset production in many CDM projects. Many of the proposals to address these drawbacks face the challenge of political feasibility. This paper argues that a way forward is to split the CDM into a two-track mechanism, with one track for offset production and the other for offset production with emphasis on sustainable development benefits.

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