The head of a UN-backed global carbon market is blaming Europe’s own regional solution for the more expansive system’s failings.The UN’s Clean Development Mechanism is so far the most audacious attempt at any kind of a global carbon market, but today it is in shambles. The CDM is a product of the Kyoto Protocol, and in theory is a tool that allows the developed world to offset emissions by funding green projects in poorer countries. Unfortunately, prices for permits in this system have tumbled in recent years, today worth less than a tenth what they were in 2011.As the FT reports, CDM chief Hugh Sealy thinks the EU is to blame:
“I want to go face to face with those technocrats in Brussels,” Mr Sealy told reporters in Lima, where delegates to this year’s UN climate negotiations are discussing replacement of the UN scheme.“Someone in Brussels has made a dumb decision,” he said, adding he had made personal attempts to raise the problem with the European Commission in vain.
The EU has restricted the use of CDM permits in its own Emissions Trading Scheme, on suspicion of the quality of some of the projects being funded in the developing world. And so, the head of the world’s only global carbon trading scheme is now throwing mud at the world’s largest regional scheme at this year’s annual UN climate summit in Lima. That’s hardly a sign of a healthy international climate movement.