Flexibility mechanisms and sustainable development: lessons from five AIJ projects

Do 'Activities Implemented Jointly' (AIJ) projects contribute to sustainable development in the host countries? Which factors have contributed to the success or failure of the projects? Five AIJ projects were examined, accounting for 90% of the total AIJ expenditure of the Dutch government. The projects are at different stages of implementation, and four are in the process of being submitted as Clean Development Mechanism (CDM) projects. Although all five projects focused on small renewables, only one was very successful in also promoting sustainable development, while one failed completely in both achieving emissions reduction and promoting sustainable development. In this small set, the project with the most cost-effective reduction of greenhouse gases was also the project that attained the most sustainable development benefits. In order to develop successful projects that also contribute to sustainable development, it is critical that projects should be demand-driven (not only by governments, but also by involved stakeholders), designed carefully, well-documented in order to ensure institutional memory, and should aim to have a demonstrative effect.