Pereira, Maria Bernadete Gomes Gutierrez, Sarmiento
Year of Publication:
Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1443
The Clean Development Mechanism (CDM) has had an important role in financing projects aimed at promoting sustainable development in developing countries. Yet this role has been bounded by transaction costs, with impacts on project-based carbon credit markets. This recognition has originated international negotiations in the United Nations Framework Convention on Climate Change towards making the MDL a more powerful instrument for the promotion of sustainable development of beneficiary countries. In this context, a sectoral MDL has been conceived, with the objective of widening the financing possibilities of projects and policies which are conducive to sustainable development and at the same time are capable of reducing greenhouse gas emissions. Based on Brazilian MDL landfill projects, this paper suggests how a sectoral approach could be used by Brazil towards the objective of financing projects/ policies in the waste management of Brazilian municipalities.