Enhanced governance and dispute resolution for the CDM
One of the main criticisms from Clean Development Mechanism (CDM) project developers is that the registration process of the Executive Board (EB) is not transparent and does not afford an appropriate mechanism to review or appeal a decision of the Board. The CDM rules provide only a limited opportunity for project participants to participate in the EB decision making process. This occurs when a request for project registration is reviewed and the Designated Operating Entity and project participants are invited to respond to issues raised by the review team. However, once that information is submitted, project participants have no further role to play. The EB consider the merits of project activities behind closed doors and it’s decision is final, with the reasons for decisions rarely explained. This is in contrast, to most national legal systems, where similar decision making processes that affect private interests include steps enabling persons affected by the decision to access information about the decision, make submissions and be heard before a decision is made, to be appraised of the basis for the decision and to appeal against the decision if the decision is contrary to law. The unique nature of the CDM as a mechanism of international law managed by a United Nations body that directly engages and affects the private sector and private investment has not been designed to give full effect to these fundamental principles of natural justice. This begs the question, what can be done to improve the transparency, accountability and governance of the CDM?