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1 Introduction 1

1.1 Problem Statement 1

1.2 Literature Review 3

1.3 Purpose and Scope 3

1.4 Overview of the Study 4

1.5 Methodology 4

1.6 Limitations 6

References 7

2 What the CDM Is and How It Operates: The CDM in an International Context 9

2.1 Introduction 9

2.2 What Is the CDM? 10

2.2.1 Background to the CDM 10

2.2.2 The CDM and Other Two Kyoto Protocol Mechanisms 18

2.2.3 Rationale for the CDM 20

2.3 How Does the CDM Operate? 23

2.3.1 CDM Modalities and Procedures 24

2.3.2 CDM Project Size 32

2.3.3 CDM Approach 33

2.4 Assessment of the CDM 35

2.4.1 Achievements of the CDM 35

2.4.2 Pitfalls of the CDM 43

2.4.3 Key Factors Influencing the Success of the CDM 47

2.5 Conclusion 49

References 50

3 The CDM in China 53

3.1 Introduction 53

3.2 Climate Change Issues in China 54

3.2.1 The Impact of Climate Change in China 54

3.2.2 China's Capacity for Addressing Global Warming in a Domestic Context 58

3.2.3 China's Position on Climate Change Issues in an International Context 67

3.3 Benefits of Implementing the CDM in China 68

3.3.1 Environmental Aspects 68

3.3.2 Economic Aspects 69

3.3.3 Social Aspects 71

3.3.4 International Status Aspects 71

3.4 CDM Projects in China 72

3.4.1 The Development of CDM Projects in China 72

3.4.2 China's CDM Market 77

3.4.3 Management of the CDM in China 79

3.4.4 CDM Awareness in China 81

3.4.5 Assessment of the CDM Performance in China 82

3.5 Barriers to CDM Projects in China 85

3.5.1 Barriers at an International Level 85

3.5.2 Barriers at a National Level 86

3.5.3 Barriers at a Project Level 89

3.6 Conclusion 90

References 90

4 Legal Issues for Implementing CDM Projects in China 93

4.1 Introduction 93

4.2 How to Implement CDM Projects in China 94

4.2.1 Legal Requirements for CDM Projects in China 94

4.2.2 Key Legal Entities Involved in CDM Projects in China 95

4.2.3 Legal Steps in Developing CDM Projects in China 97

4.2.4 Regulation Concerning the Proceeds of CDM Projects in China 99

4.3 CDM-Related Legal Frameworks in China 99

4.3.1 Climate Change Policy in China 99

4.3.2 Existing Legislative Framework Supporting the CDM 105

4.3.3 Summary 119

4.3.4 Conclusion 120

4.4 Enforcement of the CDM-Related Laws and Regulations in China 121

4.4.1 Institutional Framework of Enforcing the CDM-Related Laws and Regulations in China 121

4.4.2 Enforcement Measures of the CDM-Related Laws and Regulations 128

4.4.3 Analysis of the Enforcement of the CDM-Related Laws and Regulations in China 130

4.4.4 Summary 133

4.5 Research on Legal Issues for Implementing CDM Projects in China 134

4.5.1 Legal Relationships Involved in Implementing CDM Projects in China 134

4.5.2 CDM-Related Contracts 140

4.5.3 Assessment of Key Legal Issues for Implementing CDM Projects in China 147

4.6 Exploring Potential Risks Arising from Implementing CDM Projects Under the Legal Frameworks in China 155

4.6.1 Potential Risks at Different CDM Project Development Stages 156

4.6.2 General Risks in CDM Development in China 161

4.7 Conclusion 162

References 162

5 The CDM in China in the Post-2012 Era 167

5.1 Introduction 167

5.2 The CDM in the Post-2012 Period 168

5.2.1 The Proposal Under the UN for the Post-2012 Period 168

5.2.2 Other High-Level Meetings 173

5.2.3 The Tendencies of an International Climate Policy for the Post-2012 Era 175

5.2.4 The Fate of the CDM in the Post-2012 Regime 178

5.3 China in the Post-2012 Period 180

5.3.1 China's Position on the Post-2012 Regime 181

5.3.2 Other Major Countries' Positions on the Post-2012 Regime 181

5.3.3 Conclusion 186

5.3.4 What Will the Post-2012 Regime Bring for China? 187

5.4 The Impact of the CDM on China Beyond 2012 189

5.4.1 Implications of Implementing the CDM Beyond 2012 for China 189

5.4.2 Limitations of the CDM in Promoting Sustainable Development in China Beyond 2012 190

5.5 Conclusion 192

References 193

6 A Comparative Study on the Implementation of CDM Projects in India 197

6.1 Introduction 197

6.2 The CDM in India 198

6.2.1 Climate Change Issues in India 198

6.2.2 Implementing CDM Projects in India 206

6.2.3 India Beyond 2012 225

6.3 A Comparative Study 226

6.4 What Can Be Learned from India 228

References 229

7 Conclusion and Recommendations: How Provide for Better Implementation of the CDM in China? 233

7.1 Introduction 233

7.2 Improving the Implementation of CDM Projects in China 234

7.2.1 General Requirements for Improving CDM Projects in China 234

7.2.2 Managing Risks Throughout the Implementation of CDM Projects in China 236

7.2.3 Overcoming Barriers to the Implementation of CDM Projects in China 238

7.3 Dealing with the Limitations of the CDM in Promoting Sustainable Development in China 243

7.4 Meeting the Challenges in the Post-2012 Period 248

7.5 Enhancing the Enforcement of Climate Change-Related Legislation 256

7.6 Further Investigation 257

References 257

Appendix 1 259

Appendix 2 261