Will the Clean Development Mechanism be effectively implemented in China

The on-going process of setting up a national system for identification, approval and implementation of CDM-projects in China illustrates the changes in the Chinese attitude towards the CDM after COP7. This is a very important process, and the outcome could strongly influence investors' willingness to invest in Chinese CDM-projects. The massive interest and capacity building by international assistance organisations, bilateral and multilateral donors, for preparing the implementation of the CDM will provide China with information and experience. Nevertheless, potential factors that may negatively influence efficient implementation of CDM-projects are: the domestic implementation system is not yet finalised and may impact on China's ability to compete for CDM-projects; the priorities of the Chinese authorities may not match those of foreign investors; the main expertise regarding CDM is found in a few ministries and research institutes in Beijing, and there is a need to increase capacity for CDM among local project developers and authorities; most research carried out concerned technical issues, and there is a need to include economists and market experts in order to increase understanding of the market.