Socioeconomic and Political Aspects of Climate Change. The Role of the Clean Development Mechanism and Other Market-Based Mechanisms in Contributing to the Ultimate Objective of the UNFCCC and Sustainable Development. A Latin American Point of View of the Situation After the Paris Agreement

This chapter analyzes the role of the Clean Development Mechanism and other Market-based Mechanisms in contributing to the ultimate objective of the United Nations Framework Convention on Climate Change and Sustainable Development. A Latin American Point of View of the situation after the Paris Agreement. Latin America was a pioneer region in terms of its early participation in emission reduction and/or limitation mechanisms. This situation occurred even before the issue was installed with force in other regions, later very active in the use of the mechanism, mainly China and Southeast Asia. However, this did not result in “advantages” for the region, in terms of investment settlement or to establish better conditions in the international negotiation within the framework of the UNFCCC. This situation leads to what in some previous documents has been called “certain discouragement of the region with respect to the CDM”. It is interesting to explore how this can play in the deepening of the commitments of Latin America with the prevention of climate change, and although this objective far exceeds the scope of this brief document, we will try to raise some issues that cannot be overlooked and try to interpret the problem. More than 20 years after the Kyoto Protocol (KP), a consensual, binding, and ambitious international climate agreement is still being sought. However, substantive decisions continue to be postponed. In short, it is impossible for a market to survive without demand. And the demand arises from the degree of rigor that exists in the fulfillment of the commitments that are assumed and to what extent these commitments imply a real effort to reduce emissions.