Clean development mechanism

1. Clean Development Mechanism
Presenters:
Nitin Sharma
&
Ribhu Vashishtha

2. What is the clean development
mechanism?
• The CDM allows emission-reduction projects in developing countries to
earn certified emission reduction (CER) credits, each equivalent to one
tonne of CO2.
• These CERs can be traded and sold, and used by industrialized countries to
meet a part of their emission reduction targets under the Kyoto Protocol.
• The mechanism stimulates sustainable development and emission
reductions, while giving industrialized countries some flexibility in how
they meet their emission reduction limitation targets.
• The CDM is the main source of income for the UNFCCC Adaptation Fund,
which was established to finance adaptation projects and programmes in
developing country parties to the Kyoto Protocol that are particularly
vulnerable to the adverse effects of climate change. The Adaptation Fund
is financed by a 2% levy on CERs issued by the CDM.

3. More about CDM
• The mechanism is seen by many as a trailblazer. It is the first global,
environmental investment and credit scheme of its kind, providing a
standardized emissions offset instrument, CERs.
• A CDM project activity might involve, for example, a rural
electrification project using solar panels or the installation of more
energy-efficient boilers.
• The mechanism stimulates sustainable development and emission
reductions, while giving industrialized countries some flexibility in
how they meet their emission reduction or limitation targets.

4. 1. CDM Executive Board
2. Designated National Authority (DNA)
3. Designated Operational Entity (DOE)

5. What is innovative about the CDM?
• Provides market-oriented means to promote
sustainable development (SD) while reducing
GHG emissions below what they would have
otherwise been.
• Promotes private sector investment in SD.
• Involves public scrutiny.

6. Benefits
• Global reduction of greenhouse gases.
• Lesser cost of climate change mitigation.
• Additional benefits through reduction of other
pollutants besides GHGs.
• Opening a market for carbon investment.
• Focus on sustainable development.
• Scope for cooperation at various levels
(national, regional, and global).

7. Beneficiaries
• Developed countries.
• Countries with economy in transition.
• Developing countries.
• Small inland countries.
• Public sector.
• Private sector.

9. Tata Mundra Ultra Mega Power Project
• Owned by Coastal Gujarat
Power Limited (CGPL), a wholly
owned subsidiary of Tata Power.
• Location: South of Tunda Wand
village, Kutch district of Gujarat,
India.
• The power station is one of
nine Ultra Mega Power
Projects the Indian government
wants to be built by private
sector companies before 2017.

10. METHODOLOGIES FOR LARGE-SCALE
CDM PROJECT ACTIVITIES

11. Power would be produced with the least cost fuel (usually fossil fuels) in the absence
of the project.
Use of renewable biomass for power generation avoids the use of fossil fuel.

12. HFC-23 is released to the atmosphere from the production of HCFC-22.
HFC-23 emitted from the production of HCFC-22 is decomposed using fossil fuel in a
decomposition facility, resulting into CO2 emissions.

13. Associated gas from oil wells is flared or
vented and non-associated gas is extracted
from other gas wells.
Associated gas from oil wells is recovered and
utilized and non-associated gas is not extracted
from other gas wells.

14. N2O is emitted into the atmosphere during the production of adipic acid.
N2O is destroyed in a catalytic or thermal destruction unit.

15. Lands are degraded agricultural or grasslands with decreasing intensity of
agricultural or grazing activities.
Forests are planted on lands. Animal grazing is not allowed.

16. Lands are degraded grasslands.
Forests are planted on lands.

17. Lands are unmanaged, not severely degraded grasslands in reserves or protected
areas. Fuelwood collection is not allowed.
Forests are planted on lands. Fuelwood collection or any other human activities
such as harvesting or agricultural activities are not allowed.

18. References
1. Implementation of the clean development mechanism in
Asia and the pacific-issues, challenges and opportunities;
UN 2003 Report
2. Building international public-private partnerships under
the Kyoto Protocol; UN 2000
3. CDM Methodology Booklet; UNFCC 2002
4. Measuring the Clean Development Mechanism’s
Performance and Potential; Program on Energy and
Sustainable Development, Stanford University 2006