CLEAN DEVELOPMENT MECHANISM Introduction The Clean Development
Mechanism (CDM) is an arrangement under the Kyoto Protocol allowing
industrialized countries with a greenhouse gas reduction commitment
(called Annex 1countries) to invest in ventures that reduce
emissions in developing countries as an alternative to more
expensive emission reductions in their own countries.
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What is Clean Development Mechanism? Designed to provide
developed countries with flexibility to meet GNG emission reduction
targets that they agreed to achieve under the protocol. Developed
countries may finance GHG emission reducing projects undertaken in
developing countries and receive credits to help them to meet their
mandatory limits. Assist developing countries who host CDM project
to achieve sustainable development.
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Kyoto Protocol The Kyoto Protocol is a protocol to the United
Nations Framework Convention on Climate Change (UNFCCC or FCCC),
aimed at fighting global warming. The UNFCCC is an international
environmental treaty with the goal of achieving "stabilization of
greenhouse gas concentrations in the atmosphere at a level that
would minimize danger to the climate system. The Protocol was
initially adopted on 11 December 1997 in Kyoto, Japan and entered
into force on 16 February 2005. As of November 2009, 187 states
have signed and ratified the protocol.
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Kyoto Protocol, contd.. Under the Protocol, 37 industrialized
countries (called "Annex I countries") commit themselves to a
reduction of four greenhouse gases (GHG) (carbon dioxide, methane,
nitrous oxide, sulphur hexafluoride) produced by them. Annex I
countries agreed to reduce their collective greenhouse gas
emissions by 5.2% from the 1990 level.
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14 April 2009 Kyoto Protocol 6 Industrialized countries
Financial aids Tech. Transfer Developing countries Total 186
nations Cont Annex I 41 Countries Annex II 24 Countries Non-Annex I
145 Countries
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Objective of Clean Development Mechanism Assist Parties not
included in Annex I to the Convention in achieving sustainable
development and in contributing to the ultimate objective of the
Convention; Assist Parties included in Annex I in achieving
compliance with their quantified emission limitation and reduction
commitments under Article 3 of the Kyoto Protocol
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Outline of the project process An industrialized country that
wishes to get credits from a CDM project must obtain the consent of
the developing country hosting the project that the project will
contribute to sustainable development. Then, using methodologies
approved by the CDM Executive Board (EB), the applicant (the
industrialized country) must make the case that the carbon project
would not have happened anyway (establishing additionality), and
must establish a baseline estimating the future emissions in
absence of the registered project. The case is then validated by a
third party agency, called a Designated Operational Entity (DOE),
to ensure the project results in real, measurable, and long-term
emission reductions. The EB then decides whether or not to register
(approve) the project. If a project is registered and implemented,
the EB issues credits, called Certified Emission Reductions (CERs,
commonly known as carbon credits, where each unit is equivalent to
the reduction of one metric tone of CO 2 e, e.g. CO 2 or its
equivalent), to project participants based on the monitored
difference between the baseline and the actual emissions, verified
by the DOE.
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Clean Development Mechanism (CDM)
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The CDM Dual Products: CERs and Sustainable
DevelopmentSustainable Development
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CATEGORIES
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GOVERNANCE Executive Board supervises the CDM, under the
authority and guidance of the COP/MOP, and is fully accountable to
the COP/MOP; Ten members and Ten alternates: one member/alternate
from each of the five United Nations regional groups; Two
members/alternates from the Parties included in Annex I; Two
members/alternates from the Parties not included in Annex I; and
One member/alternate from SIDS.
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GOVERNANCE Elects its own chair and vice-chair, with one being
a member from a Party included in Annex I and the other being from
a Party not included in Annex I. The positions of chair and
vice-chair alternate annually between members from Parties included
in Annex I and Parties not included in Annex I, respectively.
Should meet at least three times a year.
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MEMBERSHIP CRITERIA Be nominated by one of the relevant
constituencies identified above and elected by the COP/MOP. Be
elected for a period of two years and be eligible to serve a
maximum of two consecutive terms. Members, and alternate members,
shall remain in office until their successors are elected. Possess
appropriate technical and/or policy expertise and shall act in
their personal capacity.
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MEMBERSHIP CRITERIA Be bound by the rules of procedure of the
executive board. Take a written oath of service witnessed by the
Secretary-General of the United Nations or his/her authorized
representative before assuming his or her duties. Have no pecuniary
or financial interest in any aspect of a CDM project activity or
any designated operational entity.
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MEMBERSHIP CRITERIA Not disclose any confidential or
proprietary information coming to their knowledge by reason of
their duties for the executive board. Shall remain an obligation
after the expiration or termination of that members function for
the executive board.
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FUNCTIONS Make recommendations to the COP/MOP on further
modalities and procedures for the CDM, as appropriate. Make
recommendations to the COP/MOP on any amendments or additions to
rules of procedure for the executive board. Report on its
activities to each session of the COP/MOP.
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FUNCTIONS Approve new methodologies related to, inter alia,
baselines, monitoring plans and project boundaries. Review
provisions with regard to simplified modalities, procedures and the
definitions of small scale project activities and make
recommendations to the COP/MOP.
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FUNCTIONS Be responsible for the accreditation of operational
entities, in accordance with accreditation standards and make
recommendations to the COP/MOP for the designation of operational
entities. Review the accreditation standards in Appendix A below
and make recommendations to COP/MOP for consideration;
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FUNCTIONS Report to the COP/MOP on the regional/ sub regional
distribution of project activities with a view to identifying
systematic or systemic barriers to their equitable distribution;
and Make publicly available relevant information, submitted to it
for this purpose, on proposed project activities in need of funding
and on investors seeking opportunities, in order to assist in
arranging funding of CDM project activities.
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Aim of CDM The dual aim of CDM is to achieve sustainable
development in developing countries cost effective reduction of
green house gases in developed countries can be seen both as a
source of synergy and conflict
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Type of projects, which are being applied for CDM and which can
be of valuable potential, are: Energy efficiency projects
Increasing building efficiency (Concept of Green Building/LEED
Rating), eg. Techno polis Building Kolkata Increasing
commercial/industrial energy efficiency (Renovation &
Modernization of old power plants) Fuel switching from more carbon
intensive fuels to less carbon intensive fuels; and Transport
Improvements in vehicle fuel efficiency by the introduction of new
technologies Changes in vehicles and/or fuel type, for example,
switch to electric cars or fuel cell vehicles (CNG/Bio fuels)
Switch of transport mode, e.g. changing to less carbon intensive
means of transport like trains (Metro in Delhi); and
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Methane recovery Animal waste methane recovery &
utilization Installing an anaerobic digester & utilizing
methane to produce energy Coal mine methane recovery Landfill
methane recovery and utilization Capture & utilization of
fugitive gas from gas pipelines; Methane collection and utilization
from sewage/industrial waste treatment facilities Cogeneration Use
of waste heat from electric generation, such as exhaust from gas
turbines, for industrial purposes or heating (e.g.
Distillery-Molasses/ bagasse) Agricultural sector Energy efficiency
improvements or switching to less carbon intensive energy sources
for water pumps (irrigation) Methane reductions in rice cultivation
Reducing animal waste or using produced animal waste for energy
generation (see also under methane recovery) and
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How it works CDM is such an offset mechanism and is the only
mechanism in the Kyoto Protocol involving developing countries
Developed countries can emit more than their GHG emissions caps if
they can offset those extra emissions by achieving emissions
reductions in developing countries. Admissible emissions reductions
in the developing countries are granted Certified Emissions
Reductions (CERs) by the CDM Executive Board, a United Nations
body. Once granted, CERs achieve status as a legal tender, quite
similar to the legal guarantee enjoyed by international currencies
A bridge between north and south.