Author(s)

G. Nhamo

Abstract

Since the coming into force of the Kyoto Protocol (KP) in February 2005, the flexible Clean Development Mechanism (CDM) has gained momentum and much recognition in many developing countries globally. Africa, and specifically Morocco and South Africa are part of this band wagon. This paper critically reviews the CDM approval and evaluation criteria for Morocco and South Africa with the view of determining possible future competition points in attracting CDM foreign direct investment in these countries. The paper also serves as a reference point for other developing countries that have or are contemplating implementing CDM project approval and evaluation criteria. The paper shows significant differences in approval time frames and sustainable development criteria. It takes about 42 days in Morocco for proponents to get responses on their proposed CDM projects compared to 60 days (if initial voluntary screening is excluded) and 90 days (if initial voluntary screening is included) in South Africa. Also sustainable development criteria appears to be more stringent for South Africa compared to that of Morocco. By the time of writing this paper, 60 CDM project proposals had been submitted and were at various approval stages in Morocco compared to 20 in South Africa. Keywords: CDM project approval criteria, Morocco, South Africa. 1 Introduction Apart from the traditional determinants of foreign direct investment (FDI), two of the most recent key determinants for attracting CDM project-related FDI by host countries are the CDM project approval and evaluation criteria. Based on

Keywords

CDM project approval criteria, Morocco, South Africa.