Clean Development Mechanism (CDM) is an agreement under the Kyoto Protocol (1997) allowing industrialized (Annex-I) countries with Greenhouse Gas emission reduction commitment to invest in or finance projects that reduce emissions in developing countries using clean technologies. Under CDM, for every tonne of CO2 that does not enter into the atmosphere, a developing (Non-Annex-I) country earns one carbon credit which can be further sold to developed countries (Annex-I) through the international carbon market. Developed countries exchange these credits in terms of money and technology transfer with developing countries to meet their GHG emission reduction targets. 7391 CDM projects were registered worldwide by November 2013, out of which 6205 (84%) are under energy industry sector. India is contributing 828 (13%) CDM projects with estimated emission reduction of 69,156,926 metric tonnes of CO2e. By the end of the first commitment period (2012), 19,061,210 metric tonnes of CO2e emission reduction was achieved. The estimated range of annual CDM-generated revenue in India varies between US$10 and 330 million (Birla et.al.2012). India has the second largest number of CDM projects in the world. The National Clean Development Mechanism Authority (NCDMA) is the Designated National Authority (DNA) which was set up to evaluate and approve CDM projects. This paper provides a probing insight into these projects, and the methodologies used in order to achieve emission reduction by Indian industries.
Carbon finance through the Clean Development Mechanism (CDM) offers significant opportunity to a developing country like India for an array of greenhouse gas (GHG) emission reduction projects. However, the transaction cost associated with the development of CDM project is a serious barrier to many small scale CDM (SSC) projects due to which these proponents face many difficulties in attracting international investors. To reduce this transaction cost, individual small projects with similar project context can be bundled together to form a single CDM project. These SSC bundled projects that reduce GHG emissions can claim Certified Emission Reductions (CERs) under the concept of bundling. This paper presents 98 bundled CDM projects registered and issued worldwide till October 2014, out of which India has 29 projects, along with a case study on small scale hydro-electric power generation project. The visited project is a good example of clean technology that helps to reduce stress on conventional energy sources and is an improvement of social and economic life of local people. Energy efficiency, grid connected electricity generation, fossil fuels switching, thermal energy production and methane recovery are some of the methodologies in these types of projects. These methodologies reduce GHG emissions without harming the environment.
Review of Clean Development Mechanism and use of Bundled Projects in Small and Medium Scale EnterprisesMayuri Naik*, Anju Singh, Seema Unnikrishnan, Neelima Naik and Indrayani Nimkar National Institute of Industrial Engineering (NITIE), Mumbai-400087, IndiaIn te rnation a l J o u rn al of W a s te R es ourc e s
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