Suppressed Demand and the Carbon Markets: Does development have to become dirty before it qualifies to become clean?
Suppressed Demand refers to a situation where Minimum Services Levels (MSL) necessary for human development are unavailable to people or only available to an inadequate level. Numerous barriers, such as low income levels or lack of infrastructure and skills prevent access to MSLs, such as potable wa...
Gardado en:
| Publicado en: | URI:https://journals.openedition.org/factsreports, |
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| Auteurs principaux: | , , , |
| Formato: | Article ou chapitre numérique |
| Idioma: | Anglais |
| Publicado: |
Field Actions Science Reports
2012
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| Sujets: | |
| Acceso en liña: | Accès Université d'Orléans et IFPM |
| Résumé: | Suppressed Demand refers to a situation where Minimum Services Levels (MSL) necessary for human development are unavailable to people or only available to an inadequate level. Numerous barriers, such as low income levels or lack of infrastructure and skills prevent access to MSLs, such as potable water, cooking energy, lighting and electrification. We investigate the concept of suppressed demand as it applies to Clean Development Mechanism (CDM) and market based incentives for GHG emission reductions. We argue that carbon markets have shown significant and catalytic potential for project development so far, but they have had limited impact on the poor, as the poorest tend to emit least. Including “suppressed demand” is in line with the objectives of the CDM and can go some way to re-balance the CDM as the development mechanism it was intended to be, and to make it relevant for the poor. Moreover, it is in fact necessary in terms of climate change limitation, as it is necessary to include low emissions areas into emission trading regimes and to incentivize lower emissions growth in poor regions. Through three case studies of CDM relevant development projects that deal with MSLs, we find that current CDM methods do not adequately address suppressed demand and that simple, transparent and common changes to assessment methods can have a significant impact on the leverage potential of these projects in the carbon market. Including “Suppressed Demand” in the CDM in the ways suggested can therefore facilitate project development in low emissions regions, by making it financially viable, and thereby avoid GHG emissions in the future. |
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