Mentors Comments:
1. Explain in brief, the Clean Development Mechanism.
2. Highlight it’s limitations in changing climate financing.
3. Suggest ways to rectify gaps and provide alternatives.
Answer:
The Clean Development Mechanism of the Kyoto Protocol allows developing countries to profit from climate-friendly projects, and India is second only to China in using the mechanism to help reduce its carbon emissions.
Challenges:
- At global levels:
- There is a gap between national needs and climate finance under Nationally Determined Contribution there is a need for additional international financial support.
- Least Developed Countries receive much less approved funding in per-capita terms from the multilateral climate funds.
- The rate of approvals is time taking, due to which the drawee nation has insufficient funds to complete its target and leads to the stalling of projects.
- The uncertainties such as, the recent refusal of the US to pay $2 billion of its pledge this have created a shortage of funds at available GCF.
- At National levels:
- In India, the local market to climate finance are insufficiently involved in financial products that support climate change adaptation.
- There is an imminent failure in securing viability-gap funding either from governments, or multilateral development banks.
- Projects in climate change have longer gestation period which deter financial institutions from investing in them.
- Shortage of funds due to insufficient budget allocation is often interfered with due to any excess or additional grants which leads to the stalling of green projects.
Way Forward
- An analytical framework is necessary to combine potential climate risks with a systematic cost-benefit analysis.
- Favorable policy and institutional actions are important for successful introduction or scaling up of financial instruments.
- Such actions, through public-private partnership (PPP) and PPP People (PPPP), can help improving climate finance.
- Climate finance should be equipped with noninstitutional financial services such as market funds, private, etc.
Comments
16 responses to “What are the roadblocks in the success of the Clean Development Mechanism? What ways can be found to tackle the issue of financing climate change? (15 Marks)”
MOJO9b10Y00D60723868
Hi Vishnu Bhimarjun
Welcome to the Daily AWE program.
Introduction is good and flow chart is appreciable.
In the body part, be sure about your facts.
Moreover CDM was bought with the motive of environmental protection, not only profitability.
There are also sufficient safeguards to prevent double counting.
Also present the national challenges in enforcing climate finance mechanisms.
The way forward is good and can be enriched further.
Satisfactory conclusion.
MOJO9930Q00N64198657
Hi Swetha K
Welcome to the Daily AWE program.
Introduction is good and apt with flow charts but can be cut short further.
The roadblocks are holistically covered but fail to mention the national level challenges.
The suggestions to improve in way forward are holistic.
Conclusion is missing.
Plzz review…id-MOJO9b11000A63126792
Hi Aakriti Kumari
Welcome to the Daily AWE program.
Introduction is good and appreciable with flow charts.
The roadblocks mentioned are holistic and good.
Ways to finance climate change are appreciable.
Satisfactory conclusion..could have been better.
MOJO9a31K00N58111047
Hi Balakumaran Kand
Welcome to the Daily AWE program.
Introduction is good and well presented.
The roadblocks mentioned in the CDM are holistic but also mention about national challenges.
Conclusion is satisfactory.
MOJO9b03K00A07920521
Hi Divya Murugesan
Welcome to the Daily AWE program.
Introduction is good and satisfactory.
In the body part, mention the international roadblocks before national level challenges.
Solutions to roadblocks in CDM are holistic.
Good conclusion.
MOJO9b04X00D25275001
Hi Amit Ojha
Welcome to the Daily AWE program.
Introduction is good and well understood.
Also mention the national challenges in the CDM roadblocks.
The measures to overcome the challenges are not covered.
Conclusion could have been more holistic
Payment ID:MOJO9b01O00A90839766
Please review
*not checked *
There must have been some confusion because I have already reviewed the rest of the answers here and on the other question as well that you have marked, that too the same day when you uploaded the answers. Perhaps you uploaded the answers once I have gone thru the rest of them. But do not worry. It will be taken care off.
Good structure in the answer.
The coverage s decent in all parts of the answer.
Good content.
The technical nature of the question makes it difficult for the aspirants to cover the base so holistically. But you managed to do that efficiently.
Keep it up
Your coverage has all the information needed in the answer.