The Resource Frontier of Green Capitalism: Capacity Building and the Creation of Carbon Markets in Cambodia and Laos

The world markets for carbon offsets are in the making. The resource frontier of the Kyoto- and Post-Kyoto carbon offsets markets is diversifying after the Copenhagen meeting. The frontier is quickly progressing in the developing world, creating offsets for compliance and voluntary markets. In this paper carbon trade is understood as part of globalising green capitalism. In the expansion of carbon markets, development aid seems to crucially support the required institutions and regulatory bodies the markets require, as well as support projects later aiming for carbon markets. Aid also seems to give assurance for continuation of mitigation mechanisms despite the uncertainties in outcomes of the UNFCCC process. As the prospects for binding emission reduction targets seems bleak, the role of non-state actors in the private and NGO sectors is increasing. This paper looks at the emerging dynamics of North-South power relations at the actual resource frontier of carbon offsets markets. This is done by analysing the implementation of mitigation mechanisms - CDM, REDD+ and Voluntary Carbon Markets - in Cambodia and Laos. These mechanisms are closely related either to present climate mitigation regime (CDM) or what might be the post-Kyoto regime of mitigation (Voluntary Markets and REDD+). Questions addressed will be, in carbon offset markets: 1) what kind of institution building takes place and on whose terms? 2) What kind of capacity seems to be required, who is building it and what are the outcomes? 3) How are North-South power relations surfacing or renegotiated in carbon trade? The research material includes case studies from Laos and Cambodia. The former is a site for many REDD+ schemes where as the latter is a host for highest number of CDM projects within Least Developed Countries. The voluntary markets are touching base in both countries main actors being international NGOs.