1. 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)

2. 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.

3. 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

4. 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

5. 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)

6. CDM Projects in Brazil 2006-2007

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

8. 1) Creation of permanent jobs

9. 2) Elimination of environmental risks for workers and poor neighborhoods

10. 3) Scale of the project

11. 4) Technological transfer

12. 5) Location of the Project

13. 6) Participation of relevant actors in the approval process

14. 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.

15. 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.

16. 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.