Institutional and legal provisions for the Clean Development Mechanism in South Africa

Abstract

The Kyoto Protocol (KP) cooperation mechanisms present local and national institutional and legal challenges, especially to developing countries like South Africa. One of the cooperation mechanisms in which greenhouse gases (GHGs) will be reduced from the atmosphere through the KP is the Clean Development Mechanism (CDM). The CDM permits developed countries to invest in projects that reduce GHGs in developing countries and earn carbon credits. The CDM is documented as one of the new investment avenues in developing countries with huge amounts of foreign direct investment predicted till 2012. South Africa has scored a first in having a registered CDM project in Africa. The country's CDM project implementation institutional set-up (that draws across many government departments, NGOs, civil and the private sector) presents a valuable experience not only to the African continent but other developing countries. In addition, legal provisions ranging from the National Environmental Management Act, through the Regulations for the Establishment of the Designated National Authority (DNA) and the Sustainable Development Criteria for CDM projects cannot be overemphasised. This paper therefore gives an analysis of such, including the manner in which the publics are involved in the process of CDM project approval processes.