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| 4 What can we expect as the CDM evolves? |
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| What corporate behaviour can we expect from CDM investors? | |||||||||||
| Private sector enterprises will play a key role in implementing the CDM. Companies will both develop project ideas and invest in approved schemes - Large scale plantation forestry in Tanzania. Companies are also likely to get involved in CDM activities where they already have operations in the host country. Projects are likely to be selected primarily on considerations of financial returns and on alignment with existing business activities. For this reason, forestry activities may be relatively unpopular. | |||||||||||
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In mainstream commercial forestry, the evidence of long-term commercial benefits from adopting high environmental and social standards is patchy. For conservative investors, this is likely to constrain take-up of those CDM opportunities that are only marginally economically viable. In contrast, a few more innovative companies may see potential gains, in terms of corporate reputation, by investing in socially responsible forestry projects. |
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| In this context, developing countries need to define the sustainable development criteria and the corporate codes of conduct that should be applicable in their countries. | |||||||||||
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Where will investment go and what do developing countries need to do? | ||||||||||
| Contact information | Glossary | ||||||||||