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Climate Policy

Climate Policy 4 (2004) 177–192

Research Article

Additionality reconsidered: lax criteria may not benefit developing countries

Jusen Asuka and Kenji Takeuchi

Received 22 August 2003 ; received in revised form 18 December 2003 ; accepted 9 September 2004

Abstract

International negotiation on the additionality issue of the CDM (Clean Development Mechanism) seems to be proceeding without sufficient information or understanding. Especially apparent is a lack of recognition that the non-additional CERs (certified emission reductions) generated by relaxing the additionality criteria may lead to economic losses for developing countries. This article quantitatively reconfirms the effects of non-additional CERs on the international community, while clarifying that the generation of non-additional CERs in excess of a certain number will eventually lead to negative consequences for developing countries, even if these countries were able to acquire all the non-additional CERs. Furthermore, the Discussion section demonstrates that future system design would significantly affect the benefits of developing countries as well as the overall environmental integrity of the Kyoto mechanisms.

Keywords: Kyoto Protocol; Clean Development Mechanism; Certified emission reductions; Additionality; Emission trading


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