The role of designated national authority in driving clean development mechanism (CDM) in Thailand

Abstract

Clean Development Mechanism (CDM) has been initiated in Thailand since 2005, but limited numbers of CDM projects have been implemented in Thailand as compared to other Southeast Asian countries. Thailand would receive significant benefits from the CDM if it was implemented widely. However, the causes hindering the project development have not been fully understood, especially the role of Designated National Authority (DNA) on CDM execution. The objectives of this research are to investigate major factors impacting CDM performance and to analyze the roles of the DNA in driving CDM projects in Thailand. The research was carried out by conducting a survey and interviewing related stakeholders to identify key factors which could have impacts on CDM project implementation and performance such as organization capacity, stringency of approval procedure, and speed and accuracy of process. The study shows that financial factor significantly hinders CDM project development in Thailand. The implementation cost, uncertainty of CERs price, and investment fund support are the major considerations to the project developers in making decision to implement CDM project. In addition, related stakeholders still lack the understanding of CDM implementation procedure. The DNA therefore needs to promote and support the CDM implementation nationwide in more effective and continuous manner, specifically a suitable financial supporting program has to be urgently developed. In essence, a national policy agenda for greenhouse gas reduction will enhance the success rate of CDM project implementation in Thailand