Africa ‘too risky’ for CDM investors

Posted by Laura Grant on November 10, 2008
Posted in Business, Green News

African countries are not profiting from the Clean Development Mechanism (CDM) projects to tackle climate change in developing countries because of administrative and technical problems, according to climate specialists who met in Dakar last week. “People think it is too risky to invest in Africa,” a delegate was reported as saying. [AFP]

Africa has only 25 of the 1,192 CDM certified greenhouse gas cutting projects around the world – a mere 2.27 percent. Eleven of these projects are registered in South Africa. The CDM is a mechanism of the Kyoto Protocol through which developed countries can offset their greenhouse gas emissions by investing in emissions reduction projects in developing countries.

Meanwhile, Bloomberg reports that the European Union has put forward a proposal to share renewable energy technologies with African countries and may also offer funding to African countries to develop their economies sustainably, reports Bloomberg. The proposal, which will be discussed in Algeria later this month, is being viewed as a way to break the deadlock in global climate change talks.

It was also announced last week that the Western Cape provincial government has established a Clean Development Mechanism office in Cape Town which is working on €60-million public transport project with the Italian government. The department of transport deal project reportedly involves between 100 and 150 higher-efficiency diesel buses, of the sort used during the Beijing Olympics. A memorandum of understanding has been signed with the Italian government for the provision of the buses. [Engineering News]

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