Cash-Strapped North Korea Seeks UN Carbon Offsets for Dam Projects

Desperate for cash, North Korea is hoping to sell carbon offsets from a series of hydropower dam projects through the UN-backed Clean Development Mechanism. According to published reports, the government of North Korea has worked with the Hanns Seidel Foundation, a German humanitarian organization, to help negotiate UN approval for credits in exchange for construction of three, 7- to 8-megawatt hydropower dams. If approved, it would be the first time North Korea has used the UN program, which grants tradable carbon credits in exchange for construction of renewable energy projects. For North Korea — which is struggling economically after years of mismanagement, environmental disaster, and international sanctions — the deal could yield millions of Euros annually. Some analysts expressed concern, however, that the money could be diverted to help fund the nation’s burgeoning nuclear program.