The national investment climate plus factors at the national level influence decisions on where, what type of projects to undertake as well as whether they ought to be developed as CDM projects. The investor's role in CDM project influences the physical spread of the CDM market. For instance, a technology provider who is offered payment partly via CER revenues may have a broad list of options of potential areas where to locate the project but a smaller choice of project type to engage in. Some funds set aside and intended for CDM funding have been decided upon as intended for specific project types and specific geographical areas. For example, the Spanish Carbon Fund directs its energies towards establishment of CDM projects in North Africa, South & East Asia as well as Latin America. Some benefactors of funds also state the minimum sizes of projects to be funded. Rules governing design of varying local/international emissions trading systems can also influence demand for different CDM credits and in turn, the geographical distribution of CDM projects?
Barriers emanating from international CDM framework.
Frameworks negotiated for CDM up to 2012 may hamper the development and creation of certain forms of CDM projects. Impediments/stumbling blocks can result from delays in agreeing such frameworks. Uncertainties pertaining to CDM methodology process as well as approval of project may also stand in the way of various projects/project types.
International Process Related Issues
International institutions and guidance keep on undergoing gradual change. CDM was established way back in 1997 but the framework for CDM project establishment was agreed upon in 2001. These frameworks plus guidance on particular issues keeps on changing with regard to large scale and small scale CDM and for emission reduction projects as well. The international structure of governance of CDM was purposely set up to put a check on emissions. The working of the multi-national section of the CDM approval process has been faulted as being too slow and too unpredictable.
Consensus pertaining to eligibility of proposed projects
There are sometimes delays in obtaining consensus for eligibility of CDM projects as well as how such can be assessed. There is a delay for example in determining the eligibility of carbon capture and storage in geological formations as a CDM activity and no deal has been concluded regarding CDM eligibility of HFC-23
reduction from the HCFC-22 premises. Multinational decisions on eligibility of CDM could have an effect on geographical distribution of CDM projects. The IPCC has identified used up oil and gas fields as suited for geological carbon collection and storage. Any deal to permit CCS
projects to come up with credits under CDM will greatly increase CDM operations in some oil and gas producing nations. This would result in skyrocketing of CDM potential in Middle East nations though not in Africa.
Uncertainty about post-2012 framework and carbon prices
There is lack of knowledge about the potential requirement for CDM credits after 2012 since the climate pattern for that period has not been determined. Although current CDM projects can generate credits for many years to come, the credibility of credits produced before 2012 is much higher than those to be produced past 2012.There is also uncertainty regarding the economic value of a single CDM credit, both before and after 2012. CER prices also varied from one project to another depending on project size, risk surrounding the project as well as location of the project. These uncertainties influence what type of CDM projects take place and therefore may act as barriers to CDM.
Ovade Ogharafe gas capture and processing plant
Lemna Energy Resources built a major plant for compression of gases in Nigeria for two major corporations, namely the Nigerian National Petroleum Corporation and the Pan Ocean Oil Corporation. Lemna Energy Resources won the tender to build this plant known as Ovade-Ogharafe Processing Plant. Once this plant is operational, the gas flared will be used to generate electricity. The M.D. Of Pan Ocean Oil Corporation, Mr. Festus Fadeyi spoke to newsmen saying, "This plant (Ovade-Ogharafe Processing Plant) will comply with the directive issued by the State of doing away with wasteful flaring of gases by the year 2008." Indeed this Ovade-Ogharafe project will fit well with Lemna's environmental purpose by reducing injurious emissions and producing power in an environmentally friendly manner. This project was founded with the intention and aim of reducing gas flaring at the Ovade Ogharefe oil field. In November 2005, the Nigerian Federal High Court ruled that the piece of legislation allowing for continued flaring of gas as an unconstitutional law and therefore "null and void." Shell...
Interior and Commerce Department agencies are to determine which species should be listed; individuals may petition the agencies to have species designated. The Fish and Wildlife Service, in the Interior Department, deals with land species; the National Marine Fisheries Service, located in the Commerce department, has jurisdiction over marine species. Any 'interested person' may petition the Interior Secretary to list a species as either endangered or threatened. The 1978
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