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This article analyses the human rights implications of projects under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC). While the CDM is likely to expire in the near future, the experience gained should be used to inform the rules of the new mechanism to be established under the 2015 Paris Agreement. We argue that the CDM and the new mechanism, as international organizations under the guidance of UNFCCC member states, should apply the UN Guiding Principles on Business and Human Rights. Based on the experience drawn from three case studies (two hydro power projects in Barro Blanco, Panama, and Bujagali, Uganda, and one geothermal energy project in Olkaria, Kenya), we show that CDM projects, while in formal compliance with CDM rules, can lead to a number of human rights infringements. We conclude with a number of recommendations on how to achieve a greater recognition of human rights in the new mechanism under the Paris Agreement.
The 2010 UN climate conference in Cancún emphasized that "Parties should, in all climate change related actions, fully respect human rights". However, so far there is no further guidance. This article discusses the relevant legal human rights norms and two case studies from the Kyoto Protocol's Clean Development Mechanism (CDM). The first case (Bajo Aguán, Honduras) shows that the current absence of any international safeguards can lead to registration of highly problematic projects. The second case (Olkaria, Kenya) suggests that safeguards, introduced here as a side effect of World Bank involvement, can have a positive impact, but that it is necessary to have them based on human rights. It therefore seems recommendable that the UN climate regime develop mandatory human rights safeguards. In addition or alternatively, individual buyer countries or groups of countries, such as the European Union, could introduce their own additional requirements for CDM projects.