Abstract
There is a danger that the CDM will fail to achieve its goals, namely reduction of greenhouse gas emissions and enhanced sustainable development. Sustainability labelling is a promising strategy to hedge against such failures. Labels could also serve as a business risk-hedging tool. The existing labels for the CDM are not comprehensive enough, however. A two-tiered stakeholder participatory approach with national flexibility under an international umbrella could be a promising option. Due to the necessary bureaucracy this might not be feasible. Labels in the spirit of the existing approaches – addressing only restricted aspects of sustainability or not applicable to all sectors – may be a second-best option. Other instruments for the further regulation of the CDM, such as a profit tax, should therefore be discussed as well.
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Muller, A. (2008). Risk management in the Clean Development Mechanism (CDM) – the potential of sustainability. In: Hansjürgens, B., Antes, R. (eds) Economics and Management of Climate Change. Springer, New York, NY. https://doi.org/10.1007/978-0-387-77353-7_14
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DOI: https://doi.org/10.1007/978-0-387-77353-7_14
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