Clean Development Mechanism

 The Clean Development Mechanism (CDM) is one of

the Flexible Mehcanisms defined in the Kyoto Protocol
(IPCC 2007) that provides for emission reduction
projects which generate Certified Emission Reduction
units (CERs) which may be traded in emissions trading
schemes. The purpose of the CDM is to promote clean
development in developing countries.
 The clean development mechanism was designed to
meet a dual objective :
◦ To help developed countries fulfill their commitments to reduce
emissions, and
◦ To assist developing countries in achieving sustainable
development
Clean Development Mechanism
CDM Projects earn tradable, saleable certified emission
reduction (CER) credits that can be used by industrialized
countries to meet a part of their emission reduction
targets under the Kyoto Protocol.
 The CDM addresses the second objective by
allowing the developed countries to meet part of
their emission reduction commitments under the
Kyoto Protocol by buying Certified Emission
Reduction units from CDM emission reduction
projects in developing countries.
 Benefits of CDM projects include investment in
climate change mitigation projects in developing
countries, transfer or diffusion of technology in
the host countries, as well as improvement in the
livelihood of communities through the creation of
employment or increased economic activity.
 The CDM is one of the “project-based”
mechanisms, which is designed to promote
projects that reduce emissions.
 The CDM is based on the idea of emission reduction
“production”. These reductions are “produced” and
then subtracted against a hypothetical “baseline” of
emissions. The baseline emissions are the emissions
that are predicted to occur in the absence of a
particular CDM project. CDM projects are “credited”
against this baseline, in the sense that developing
countries gain credit for producing these emissions
cuts.
 Between 2001, which was the first year in which CDM
projects could be registered and 7 September 2012, the
CDM issued 1 billion Certified Emission Reduction
units. As of 1 June 2013, 57% of all CERs had been
issued for projects based on destroying either HFC-23
(38%) or N2O (19%).
 Carbon capture and storage (CCS) was
included in the DM carbon offsetting
scheme in December 2011. By 14
September 2012, 4626 projects had been
registered by the CDM Executive Board
as CDM projects. These projects are
expected to result in the issue of
648,232,798 certified emission reductions.
 The Himachal Pradesh Reforestation
Project is claimed to be the world’s
largest CDM.
Carbon Cap and Trade
 The cap on greenhouse gas
emissions that drive global
warming is a firm limit on
pollution. The cap gets
stricter over time.
 The trade part is a market
for companies to buy and
sell allowances that let
them emit only a certain
amount, as supply and
demand set the price.
 Trading gives companies a
strong incentive to save
money by cutting emissions
in the most cost effective
ways.
Example of success of Cap and
Trade Technique
 Acid Rains have stopped owing to
successful implementation of cap and
trade technique applied on Sulphur
emissions.
 Similar results are expected from
Cap and Trade techniques when it is
applied to reduce CO2 and other
green house gas emission.
 Roll No. : 18TMPB18
 Enrolment No. : 181310109043