Different views of how CDM projects contribute to sustainable development : A study of stakeholder perspectives of two large-scale renewable energy projets in Southern India

Abstract: Climate change and sustainable development are interlinked in several ways. A global sustainable development with decreased emissions of green-house gases is seen as a prerequisite for mitigation of climate change. Simultaneously a changing climate will put constraints to development endeavours in developing countries. Yet, a sustainable pathway should include both mitigation and adaptation to climate change facilitating social development, economic growth and a stable environment in developing countries. The Clean Development Mechanism (CDM) of the Kyoto Protocol is combining reduced green-house gas emissions with sustainable development in the CDM project’s host country. This so called dual goal has turned out hard to fulfil, especially the local development objective.   This thesis studies how CDM projects contribute to local development and how this development is viewed differently by various stakeholders. This was made through qualitative interviews with actors connected to two CDM projects in Southern India. In addition, a literature review and a document study was made. The projects chosen are in the renewable energy sector, using biomass fuel. Renewable energy is regarded as an important factor to come to terms with increasing green-house gas emissions.   The results from the literature review and document study show that the expected contribution by CDM projects to local sustainable development is usually expressed in terms of employment, distribution of benefits, social infrastructure, access to energy and technology transfer. The environmental benefit is included in the reduction of green-house gas emissions. In the context of local development, stakeholder participation is brought up as an important factor. The results of the interviews present similar categories of development linked to CDM projects. However, differing views of actual local development assisted by the CDM project was discerned in the answers.   This study points to scale-related problems linked to the global benefit of mitigation of climate change in combination with local development. In conclusion, there is a need for monitoring and evaluation of actual contribution by CDM projects to local sustainable development. To facilitate local sustainable benefits of CDM projects, enhanced stakeholder participation is necessary during the whole project activity period.