Promoting Renewable Energies in Developing Countries through the CDM

  • Project no.2227
  • Duration 06/2005 - 07/2007

The use of renewable energies entails many development and other ancillary benefits and could thus become a crucial element in the design of (sustainable) development strategies for developing countries. The Clean Development Mechanism of the Kyoto Protocol (CDM) could be an important instrument to foster the market introduction of these technologies in developing countries. However, in its current design the CDM seems to provide only little incentives for renewable energy projects. This research project therefore aimed at elaborating solutions for overcoming the present barriers to the use of renewable energies in the CDM. For this purpose, it analysed the national circumstances, obstacles and potentials for renewable energies and the CDM in four developing countries: Egypt, Morocco, Thailand and Senegal.
The research endeavour encompassed three steps: First, four brief case studies providing an overview of the potential for renewable energies and the current status of the CDM in these four countries were carried out. Based on this information, an advisory board to the project, set up by the German Federal Environmental Agency, chose two countries (Egypt, Thailand) to be researched in further detail. Second, a more detailed analysis of the potentials and barriers to renewable energy CDM projects in the two chosen countries was conducted.
The aim was to assess the potential of the CDM for promoting the transfer of renewable energy technologies to these countries but also in general. Finally, recommendations were developed as to how to overcome the discovered barriers to the use of renewable energies in the CDM. The main findings were summarised in the brochure "Renewable Energy and the Clean Development Mechanism - Potential, Barriers and Ways Forward".