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Corruption of Bribery

Chapter 6 : Corruption in the “Carbon World”

 Renewable energy, wind, solar, hydro and biofuel
 Gas destruction (Industrial pollutants) HFC, methane and Nitrous oxide comprise 71% of
CDM projects as well as carbon capture and storage
 Energy efficiency cogeneration, flaring, buildings
 Fuel switching
 Reforestation LULUCF

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It should be noted that nuclear projects cannot qualify under CDM . Every methodology has to
prove “additionality” meaning that abatement would not be economically viable without CDM
support and that it has no adverse environmental or social impact.

A survey by the World Wildlife Fund estimated that as many as 20% of all CERs originated from non‐additional
projects that should not have been approved. It is estimated that between 33.33 and 66.66% of CDM projects do
not represent genuine emission reductions.

The largest CDM pay‐outs have been to HFC polluters. Critics say it would have been possible to pay them €100
million to capture and destroy emissions compared with the €4.6 billion in CDM credits that is currently being
paid. HCF 23 emitters can earn more from CDM credits than from selling refrigerant gases. This results in a major
distortion of the market. At a cost of a $5 million investment in an incinerator a Chinese company gained $500
million in credits

12.2.3 Validation and Designated Operational Entities
12.2.3.1 Designated Operational Entities

The “Carbon World” has been a goldmine for inspection companies such as SGS, TUV and Den
Norske Veritas, not to mention scores if not hundreds of other firms which have sprung up to
verify and validate projects and claims to CERS.

The most important inspection task is assigned by the UNFCCC to a band of selected inspectors
called “Designated Operational Entities” (DOEs). At the present time there are around 30 D0Es
and their role is pivotal in the success of CDM and JI projects. Although they effectively work as
the eyes and ears of the UNFCCC they are paid by project participants, thus raising questions
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about conflicts of interest .

On a typical CDM project, a DOE will assist in the preparation of a Project Design Document (PDD)
usually based on an Approved Methodology. The DOE will then validate the project and submit
its report to the UNFCCC. As soon as the project becomes operational, a new DOE must be
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appointed to verify periodic Monitoring Reports and to certify claims for CERs. For projects
involving the abatement of industrial gases (such as HFC or Nitrous Oxide) the DOE must ensure

102 The “Greens” don’t like nuclear. In fact they like nothing except wind
103 It should be noted that DOEs are classified as FPOs
104 On arbitrary periods selected by the participant

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