Would CDM credits make enhancement economically feasible?
This will depend on the costs of the enhancement projects and the long-term prices of CDM credits. The CDM is a market-driven mechanism, subject to the laws of supply and demand. The carbon sink potential of the Bahamas could potentially dwarf CDM projects in other countries, making the Bahamas a low-cost leader in this arena and driving CDM credit prices lower. The possibility of a CDM price decline suggests that the Bahamas should seek private capital for enhancement projects rather than risking the credit rating of the nation’s sovereign debt. Will ordinary Bahamians benefit from this? It’s safe to say that Bahamians take a dim view of “pie in the sky” projects. If these ideas are seen as just another foreign enterprise with little relevance or benefit to locals, they will go nowhere. If done well, a “carbon sink industry” could diversify the Bahamian economy into a niche technology field. The Bahamas would become a center of excellence for the specialized research and engineering n
