|
|
| Home » Carbon management » Clean Development Mechanism (CDM) |
|
Clean Development Mechanism (CDM) |
|
Clean Development Mechanism (CDM) is a plan under the Kyoto Protocol, which in turn was an outcome of the Convention of Climatic Change held in Rio in the year 1992. This mechanism basically requires nations to undertake green house gas emission reduction projects.
The CDM or Clean Development Mechanism is a ‘flexibility mechanism’. According to the Kyoto Protocol, around 39 developed nations are expected to reduce their greenhouse gas emission by 5.2%, at an average, by 2008-2012. CDM enables these nations to achieve this target by investing in emission reduction projects in developing countries. CDM is the first environmental investment and credit plan offering a consistent emission counterbalancing instrument.
Through CDM, on one hand where developed nations can reduce the level of CO2 in their atmosphere, on the other hand developing nations can experience sustained growth and development due to investments by the developed countries.
Method of operation:
The program has been operating since the beginning of 2006. All projects undertaken under the Clean Development Mechanism undergo a public registration and issue process which helps in quantifying the emission reduction that it can achieve. The benefit and need of the project is also assessed. All projects are scrutinized by the CDM Executive Board (EB). Projects, in order to get registered, must be first approved by the Designated National Authorities.
Once a project is registered, the executive board issues credits called Certified Emission Reductions (CER) to the participants of the projects. Since 2006, as many as 1000 projects have already been registered under this mechanism. It is forecasted that the amount of CER’s that will be produced for the first period (2008-2012) will be more than 2.7 billion tonnes of CO2. Almost 4000 projects are yet to be certified.
Projects registered:
CER’s has been issued from primarily the HFC destruction projects. TransMilenio, the bus rapid transit system in Bogota, is also registered under this mechanism. It is the only public transportation system that is registered under this scheme.
Development of CDM Market:
Demand for CDM projects plays a lead role in determining the global market for CDM. Developing nations, who are eyeing the CDM market for investments and developments, will not only see how many projects are being generated, but will also see how many countries are being benefited by them. In case only a handful of countries are found to be benefited, then extension of the Clean Development Mechanism may be doubtful.
|
|
|
|
|
|