Close this search box.

Board fails to address carbon leakage from adipic acid projects (Newsletter #3)

In a bold move, the CDM Executive Board overruled at its last meeting the recommendation by the Meth Panel on how „existing capacity“ should be interpreted for projects that reduce N2O emissions from adipic acid production. This decision will result in continued issuance of CERs that do not present real emission reductions, given the significant carbon leakage that is ongoing in this sector.

According to data available to CDM Watch, the global adipic acid production shifted from plants that reduce the N2O without the CDM (in industrialised countries and in Singapur) to plants that use the CDM to mitigate the N2O. The underlying methodology aimed to prevent such carbon leakage by limiting it to production capacity installed by the end of 2004. However, this provision was not effective: project participants and DOEs misused the vague language and established artificial production capacities that were never achieved by the plants in their long operation history. Based on a request for clarification (CLA0148), the Meth Panel recommended to interpret existing production consistent with other methodologies, such as for HFC-23 destruction, as the maximum production during the most recent three years. However, the Board overruled the recommendation by the Meth Panel and allowed the project developers to get CERs based on a hypothetical historical production level. Given the ongoing carbon leakage and the strong financial incentives from CERs, this decisions will result in the issuance of CERs for nothing else than a shift of GHG emissions. Thumbs down.


Related posts

Going for green: Is the Paris Olympics winning the race against the climate clock?

Aware of the impact of the games on the climate and of record temperatures on the games, organisers of the Paris games have pledged to break records when it comes to reducing the impact of this mega event on the planet. ‘Going for Green’, a Carbon Market Watch and éclaircies report assessing the credibility of these plans reveals that if completely implemented, only 30% of the expected carbon footprint is covered by a robust climate strategy.

Lost in Documentation

Navigating the maze of project documentation

A new report by Carbon Market Watch has raised concerns over a lack of transparency and accountability within the unregulated voluntary carbon market caused by the unavailability of important project documents from the four biggest carbon crediting standards.

Join our mailing list

Stay in touch and receive our monthly newsletter, campaign updates, event invites and more.