The Clean Development MechanismAn International Perspective and Implications for the LAC Region

This report provides an analysis of international experience with the Clean Development Mechanism to date, and its potential contribution to the LAC region. The report was prepared by the Pembina Institute for the Latin American and Caribbean Energy Organization (OLADE). It begins by describing the basic principles of the CDM and reviews the lessons learned from the first two years of CDM operation. This is followed by a more detailed review of the on-going baseline and monitoring methodology approval process within the UN. The development value of the CDM is also explored along with a review of current CDM markets and host countries responses to the CDM outside the LAC region. The various capacity building programs established by Annex 1 countries to support the CDM are also described. The report concludes with recommendations for LAC member governments on using the CDM.