Certification and Climate Change: The Role of Private Actors in the Clean Development Mechanism (CDM)

Abstract

The blurring of the public/private divide is one of the distinguishing features of the transformation of administrative law. A phenomenon widespread within domestic administrative law, it is rising also in the context of global environmental regulation.

The Clean Development Mechanism (CDM), one of the three "flexibility mechanisms" of the Kyoto Protocol, is a case in point. Within such a mechanism, private actors (the designated operating entities or DOE), as a result of a specific accreditation procedure; are entitled to evaluate the environmental projects proposed, verify their actual environmental impact, and subsequently certify the amount of emission reductions the project performed.

The analysis shows the DOEs play a crucial role in the CDM, acting as verifiers and certifiers. Hence, the DOEs are private entities executing administrative functions at the global level. Because of the strong links between the DOEs and the EB (the public body supervising the functioning of the CDM), a co-regulation system appears to be in place.

Keywords: transnational regulation, private regulation, global administrative law, Clean Development Mechanism, CDM, climate change

JEL Classification: K32