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Clean Development Mechanism GROUP-7 Manmeet Singh Simranjeet Singh Suryapreet Singh Nidhi Singla Parul Lalit

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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.

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