• Bruce Rich
  • Environmental Forum
  • September-October, 2017
  • p. 25

A look back at the Clean Development Mechanism and at future reduction efforts.....The study [on behalf of the European Commission] identifies inherently contradictory incentives in international carbon offset trading that undermine attempts at reform: “Information asymmetry between project developers and regulators” — the developers have a big advantage in gaming the system — “combined with economic incentives for project developers to have their project recognized as additional, are a major challenge.” Host governments can be perversely incentivized “not to implement domestic policies to address emissions” rather than lose prospective revenues from [carbon credits].".

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