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The issue of geographic equity has been one of the greatest concerns throughout the history of the CDM. To encourage wider implementation of the CDM or a reformed CDM and new market-based mechanisms in the future, it is necessary to identify the barriers that hinder implementation of CDM projects in underrepresented countries. This paper quantitatively analyzes the relative significance of barriers to implementing CDM projects in Indonesia. Using the analytic hierarchy process (AHP), the results revealed that the barriers related to financing, the carbon market, and international CDM policies and rules are the three major categories of barriers. Barriers that are primarily related to domestic factors, except financing barriers, turned out to be relatively less significant. Over the past several years, substantial resources have been devoted to capacity building activities. However, our results indicate that we should at least carefully reexamine how to distribute our resources among various barriers in the future.

Prioritizing Barriers to Implementing More CDM Projects in Indonesia: An Application of AHP