London, 30 July (Argus) — The clean development mechanism (CDM) executive board (EB) plans to ask the UN's methodology panel to launch an official investigation into the alleged “gaming” of HFC23 projects, a coalition of environmental non-governmental organisations (NGOs) said today.

Credit issuances from these projects will continue in the meantime. “We welcome the board's decision to officially launch an investigation. However, we are concerned that, without a suspension of the methodology, this could be used to delay taking necessary action,” Geneva-based NGO Noe21 said.

“The only reasonable and honest course of action is for the CDM to suspend crediting for these types of projects until the methodology is revised to prevent this type of abuse.”

The HFC23 decision was taken at the EB's 55th meeting in Bonn, Germany, this week, despite a recommendation from the methodology panel to suspend crediting. The chairman of the methodology panel, Lex de Jonge, recommended putting the current crediting methodology on hold with immediate effect to address the serious concerns and send a signal that the board is taking the issue seriously, according to the coalition of NGOs. But the recommendation was overruled by other board members. The methodology panel had noted four distinct ways that overestimation of credits could occur.

German-based NGO CDM Watch submitted a request to the UN in June to revise the methodology for HFC23 projects, arguing that alleged carbon reductions from HFC23 projects are actually increasing emissions. The watchdog called for a benchmark on HFC23 projects that will cut potential certified emission reduction (CER) yields by more than 90pc after 2012.

CDM Watch and a number of other environmental NGOs argue that the EB's decision to formally investigate the issue, rather than revise the methodology, is a result of conflicts of interest in the board. The coalition argues that Japanese, Chinese and Indian board members, which have a vested interest in the continuation of HFC23 projects, have prevented an immediate revision. “Allowing decisions to be based upon interventions from members with clear conflicts of interest as witnessed yesterday puts the credibility of the CDM at risk,” CDM Watch said.

Japanese board member Akihiro Kuroki was keen to dismiss the methodology revision request, according to the NGOs, while Chinese board member Maosheng Duan and Indian board member and former EB chairman Rajesh Sethi were also scathing of the request. Japan, China and India all have considerable involvement in HFC23 projects — Japan as an investor country, and China and India as host countries.

Send comments to feedback@argusmedia.com
fr/wj 2.1

If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.

Copyright © 2010 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.