IUCN Clean Development Mechanism and distributional issues: an analysis of the Brazilian certified projects Ana Maria de Oliveira Nusdeo (Universidade de São Paulo/Universidade Católica de Santos)

Purpose of the Paper Contribution of the Clean Development Mechanism projects for the sustainable development of host countries Which is CDM´s vocation? CDM Projects approved in the last two years in Brazil and analysis in accordance to some sustainable development indicatives.

Sustainable development concept Encompasses the need of reconciliation of environmental, economic and social goals. Eco-development (Strong and Sachs): Local or regional cultures Local and regional arrangements for development

Market mechanisms Allow efficiency to achieve innovation and incentive for the environmental goals Other policy instruments aimed directly to distributional issues (fund transfers) Challenge for market mechanisms: produce some equitable results in addition to the efficiency ones. That is the purpose of CDM: efficiency and sustainable development

Which kind of contribution CDM projects brings to the sustainable development? Sustainable development indicatives. Literature: The International Institute for Sustainable Development (COSBY, Aaron, et. Al. Making development work in CDM. Phase II of Development Divident Project, 2006). 2 Groups of indicatives: Indicatives shown in the reviewed projects (1st group) Ideally defined indicatives (2st group)

CDM Projects in Brazil 2006-2007

FIRST group of indicatives Related to the approved projects contributions for sustainable development of Brazil

1) Creation of permanent jobs

2) Elimination of environmental risks for workers and poor neighborhoods

3) Scale of the project

4) Technological transfer

5) Location of the Project

6) Participation of relevant actors in the approval process

SECOND group of indicatives 1) Biodiversity protection 2) Building of adaptative ability of communities. related to local strategies. when communities own the project or technology or gets the capacity to replicate technologies.

Conclusions Sectors: Energy sector is the first. There were no afforestation and reforestation projects. location of the projects: Brazilian Southeast region (most economic developed). hosted close to the half of projects. The poorer regions of the North and Northeast attracted a much smaller number of projects.

Conclusions The simplified rules for small scale projects may have increased its economic attractiveness. Economic benefits of development, job creation was much more frequent than technological transfer. Elimination of environmental risks was present in a good percentage of projects Finally, relevant actors’ participation is still small, but NGOs are the most frequent participant.