Success Factors and Barriers for Technologc Providers in CDM and JI Markets
Ecologic Institute and Perspective GmbH analysed the role of German companies in the CDM and JI markets in this report funded by the German Federal Environment Agency. German producers of environmental technology hold leading positions on the world market today and are expected to do so in the future. However, German technology providers do not play a major role in CDM/JI projects: the share of German technology in CDM projects is less than 20%. This is due to a general lack of information concerning CDM/JI, as well as to the regulatory complexity of the CDM/JI approval process and correlating transaction costs. The lack of applicable methodologies is another core reason for low participation of German technology providers in CDM/JI. An English summary of the report is available for download.
The German Federal Environment Agency (Umweltbundesamt) tasked Perspectives GmbH and the Ecologic Institute with a detailed assessment of the role of German companies in the CDM and JI under the project "Chances and barriers for technology providers in the CDM and JI markets" (FKZ 3710 41 502). The focus was on technology companies, whose participation in CDM and JI as providers is not often evaluated and for whom only aggregated data has been available. The CDM can provide a foreign market for German providers of environmental technologies, particularly in the face of strong price competition at the global level (e.g. in the fields of solar heating or waste water treatment). The future geographic focus of the CDM is on Least Developed Countries. A reformed JI Track 2 could also open up markets in new countries, but is pending political decisions.
The study aims to illustrate current participation in and future potential for German technology providers in CDM/JI projects. The range of technologies was limited by applying evaluation criteria to identify those with a relevant potential for CDM/JI project participation. The analysis included an expert survey documenting the experiences of German companies in CDM/JI projects, especially with regard to success factors and barriers. The survey results informed recommendations to the German federal government on how to strengthen the activities of German technology providers in CDM/JI projects.
Even against the background of limits to the CDM post 2012, development of methodologies and funding of pilot projects constitute ways to overcome some of the barriers to increased contribution of technology in CDM/JI projects on the part of German firms. Programmatic CDM (PoAs) has particularly high potential for incorporation of technologies German firms provide, e.g. water purification, energy efficiency in the building sector, solar heating, recycling, and to a limited extent also landfill gas technologies. Development of standardized procedures could significantly improve the applicability of the CDM in the transport sector (in this case for rail traffic) as well as for the building sector. The German government should investigate and promote optimization of existing opportunities and consider measures to overcome existing barriers to German technology providers in the CDM/JI context. Such measures include improving existing information services, creating technology-specific target markets and export analysis, hosting "matchmaking events" in selected host countries, methodology development as well as reviewing financing measures and other technology-related activities such as pilot studies.