Towards the promotion of investment in the CDM by the private sector: scope for finance support by Japanese government

This paper analyzes private sector involvement in the CDM in terms of experience with AIJ, private sector incentives and the potential barriers to private sector investments in the CDM. Such barriers are mainly associated with the instability of the incompletely-defined CDM mechanism itself and fundamental risks of projects in developing countries. Examining the possible financing methods of the CDM, the paper highlights a need for early consensus formation in international community as well as policy measures aiming to facilitate private sector investment, mainly with reference to finance support by Japanese government.

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Workshop on Flexibility Mechanisms and Climate Change Policy in Asian Countries:
Experiences and Technology Response from EC Research, Asian Institute of Technology, Bangkok 14-15 January 1999