The association’s policy statement explains the workings of the CDM and looks in detail at the current and future role of hydro power projects within it. The key messages identified are:
• 1. The CDM remains the main international mechanism currently in place to directly mobilise private sector capital for clean development worldwide.
• 2. The CDM also remains an important way for Developing Countries to avoid or mitigate greenhouse gases through an international mechanism.
• 3. Hydro power is the CDM’s leading deployed renewable energy: this is likely to continue. In addition, the sustainability of hydro power has been defined and measuring tools exist to indicate performance – this brings greater confidence to all parties involved.
• 4. There are disincentives to hydro power reservoir projects in current CDM rules, which mean significant missed opportunities for increased climate change mitigation and adaptation – these should be addressed in future CDM reform;
• 5. The world’s hydro power sector calls upon governments to elevate the future of the CDM post- 2012 on their agendas for Mexico (2010) and South Africa (2011), and strongly supports the current CDM reform being implemented by the CDM Executive Board, as a step in the right direction.
In its review of hydro power’s role in the CDM, the Policy Statement highlights the importance of hydro power CDM projects in reducing CO2 emissions. The 541 CDM registered hydro power projects (as of December 2009) equate to the largest proportion of CDM projects (by type), with 27% of the total, which is expected to generate more than 47 million tonnes of CO2 emission reductions per year until 2012.
The Policy Statement also draws attention to the high and continuously improving level of sustainability of hydro power projects registered within the CDM, many of which also voluntarily impose upon themselves international sustainability assessment frameworks, such as the iha Sustainability Assessment Protocol (2006).
TheIHA acknowledges that the CDM remains the main global, environmental investment and credit scheme currently in place to directly mobilise private sector capital for clean development worldwide; but it is concerned that with no legally binding international treaty arising from Copenhagen (2009), the long-term future of the CDM is uncertain.
