The CDM has performed well with more than 2500 registered projects and an overall investment of US $ 106 billion that is likely to generate 1.84 billion CERs and expected revenues in excess of $30 billion before the end of the First Commitment Period. But there is an enormous imbalance in the geographical distribution of projects with 83% of the projects being hosted by just seven countries of which also China and India alone account for about three fourth. Attempts by the Nairobi Framework to address this deep flaw by building capacity, reducing costs and time and improving information sharing and inter-agency coordination is yet to yield results and can, at best, bring only small incremental relief because they address issues that are peripheral to the core problem of poor and corrupt governance in many developing countries presenting unacceptably high political and sovereign risks to foreign direct investments. Venture investment is risky, poor governance makes it riskier, and if this investment originates from a foreign country the risks can reach unmanageable levels. These risks can be reduced significantly by creating partnerships with host country governments and an influential multilateral like the World Bank along with private investors from a consortium of developed countries for CDM investments in Public-Private-Partnership mode. A CDM Initiative Fund could be set up under the aegis of World Bank with the single objective of involving the poorest and the neediest fifty countries in Climate Change mitigation for providing loan, insurance and help in capacity building. In exceptional circumstances this Fund can also meet the operational costs of the DNA staff in some of the poorest countries that cannot afford to have a DNA.

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