The document discusses issues with the clean development mechanism (CDM) under the Kyoto Protocol. It notes that while CDM aims to fulfill the goals of Articles 2 and 3 of the Protocol, the development benefits have not adequately reached local communities. It questions whether designated operational entities examine development benefits stated in project design documents and whether national authorities properly review projects. It also examines indicators that could be used to better quantify sustainable development benefits and ensure environmental additionality of projects. It concludes that reforms are needed to the CDM process to strengthen review of methodologies and development benefits.

1. www.CleanTradeGroup.com

2. Vagish Sharma and Dr. Keshav C Das

3. “ CDM has suffered from its own success”-EB.45 Administrative Project Understanding Project motive Fulfillment of Article 2 and 3 of Kyoto Protocol

6. 37 Designated Operational Entities (DOEs) 137 Designated National Authorities (DNAs) 157 methodologies have been approved . ‘ it’s time to scale up and enhance the mechanism to release its full potential’- Lex de Jonge, Chair of CDM –EB

7. Environmental (Atmospheric) benefits Socio-economic benefits It is the host Party’s prerogative to confirm whether a clean development mechanism project activity assists it in achieving sustainable development”- Bonn Agreement

8. why do not the development benefits percolate down to the communities? Does DOE examine the stated development benefits in a PDD and evaluate the authenticity? Does DNA follow a ‘blind-review’ while approving the projects under this guideline? Why does project proponent and project developer fail to provide quantitative proofs on the paradigm shift of development benefits? Is it happening due to the methodological lacunae for project development or owing to the overlooking of this component by CDM administration?

9. Development Benefits Indicators PDD: 60 Criterion Research Question Food Does the project have an effect on the ability of the community to produce sufficient food or produce crop? Forests Does the project have an effect on forests as wood resource and natural product resource? Habitats Does the project have an effect on flora and fauna? Water supply Does the project have an effect on water supply for washing/drinking? Resource depletion: Social and Human Does the project have an effect on the depletion of resources required for its manufacture or operation? Jobs Does the project have an effect on number of diversity of jobs and raising quality of jobs and there numbers Freed time Project have an effect on the quality of life effect on local human health of outdoor and indoor air pollution, preventing disease , respiratory inhalation, backache, burns etc. Education Project have an effect on improving the education level Skills Does the project have an effect on developing and improving new skills? Income generation Does the project have an effect on income generation? Or does it have any possibility to get more opportunities to increase income? Energy Does the project have an effect on the level of service energy on total needs of community Affordability Project has an effect on the cost of community of the service provided by the project as a percentage of income. Infrastructure Effect of project on infrastructure will increase. shelter and health services Supply Chains Project have an effect on in simulating local supply chains for spares, maintenance and manufactures? Local equipment Effect of project on the locally manufactured equipment.

10. 32 projects exhibited comparatively good contribution to sustainable development 28 projects did not highlight the sustainable development Contradiction in Section A, D and E of the PDD Sub-standard stakeholder consultation

11. Project additionality (i.e., the project is additional) Environmental additionality (sustainable development/development benefits).

12. A good project takes more than 14-24 months to get registere Most of the approved methodologies of UNFCCC were also developed with a ‘project motive’ DNA’s Project size Bundling

13. Host countries need to emulate the specification of Kyoto Protocol under a strict ‘environmental additionality’ tool. Review of methodologies For each category, UNFCCC shall clearly define the indicators for development benefits and perhaps, it could be clubbed with the ‘combined tool for additionality’ as well as in monitoring plan.

14. CER Price DNA risk Validation risk Monitoring risk Verification risk Registration Risk EU ETS market price EURO 5 15