Barriers and opportunities of using the clean development mechanism to advance renewable energy development in China

Studying the barriers and opportunities of using clean development mechanism (CDM) to advance renewable energy deployment in China has a practical significance to achieve its ambitious renewable energy plan which affects the global efforts to curb carbon emission. This paper analyses the role of CDM in promoting renewable energy development in China by reviewing the CDM activities, especially renewable energy CDM activities in China. There are three barriers to utilizing CDM for renewable energy deployment, namely the dilemma of additionality, lower proportional certified emission reduction credit revenues on the investment, and the lack of incentive for technology transfer. Whereas the opportunities of using CDM in promoting renewable energy development include the international carbon market redirection to renewable energy, Chinese renewable energy boom driven by a series of effective energy policies, and additional finance from CDM supporting Chinese renewable energy development. Based on the study on the barriers and opportunities, the article considers that CDM is an indispensable incentive and a viable choice to promote renewable energy deployment in China.