Abstract
M.Phil.
Clean Development Mechanism (CDM) can be defined as one of the project-based mechanisms established under the Kyoto protocol mechanism as a supplementary measure to assist Annex 1 parties meet their emission reduction targets through investing in project activities that reduce Greenhouse Gas (GHG) emissions and contribute to sustainable development in Non–Annex 1 countries. These projects reduce GHG emissions and generate credits called Certified Emission Reductions (CERs) that the Annex 1 party can use to meet their emission reduction obligations under the Kyoto Protocol [Curnow & Hodes, 2009].
While countries such as China and India have benefited remarkably from the CDM, African countries (including South Africa (SA)) have failed to maximise the financial benefits offered by this mechanism. Even though South Africa is leading, in terms of the number of registered CDM projects in Africa, it is still lagging far behind other developing regions in this regard. The South African leaders in CDM project development are in the private sector.
This research aims to identify the constraints that inhibit large scale implementation of CDM projects by Gauteng Municipalities and to investigate the reasons why South African municipalities are lagging behind the private sector in CDM project development, and identify opportunities for further development of CDM projects. This identification was achieved by compiling a list of known barriers (then investigating these barriers together with a number of other factors that may impact negatively on the CDM market in South Africa)
The study was conducted using qualitative research techniques, which utilises methods such as participant observation, in-depth interviews and/or focus groups. Three different groups of respondents were identified: (i) the European CER buyers; (ii) the project developers/ CDM consultants in South Africa; and (iii) the Gauteng municipal officials responsible for CDM project development. A separate questionnaire was compiled for each of the three target groups, with purpose of drawing conclusions about the prevailing status of the South African CDM market from the perspectives of these three different groups.
Three previous studies have been conducted to investigate the barriers of implementing CDM in South Africa, examining the problem from various perspectives. Little et al. [2007] conducted a study that focused on the inhibiting and facilitating factors affecting the implementation of CDM by South African industries. Wilson [2007] focused on the barriers against and drivers for the implementation of CDM within the Nelson Mandela Bay
Municipality - this study drew conclusions about CDM implementation in municipalities based on the experiences of this single municipality. Winkler and van Es [2007] dealt with the opportunities and constraints of the CDM implementation in energy efficiency projects throughout South Africa.