Windfall from Clean Development Mechanism
With carbon emissions and their impact on global warming raising concern, the Kyoto protocol suggests ways to regulate pollution control measures. It has set binding targets for 37 developed countries and the European Community, making reduction of greenhouse gas (GHG) emissions amounting to an average of five per cent against 1990 levels mandatory over 2008-12.
The participating countries can reduce their carbon footprint through concerted measures. One such is the Clean Development Mechanism (CDM), where the signatories to the protocol can implement emission reduction projects in developing countries. Under the CDM, developed countries can purchase certified emission reduction units (CERs), generally called carbon credits, each equivalent to one tonne of CO2, from developing countries to meet their emission targets.
While developing countries currently have no obligation to constrain their GHG emissions, they stand to benefit monetarily if they do so voluntarily by hosting projects under the CDM. In developing countries, CERs are issued by the United Nations Framework Convention on Climate Change’s CDM Executive Board to registered CDM projects that can be shown to reduce emissions of greenhouse gases. Such projects can earn CERs, which can be sold in a new environmental market. GHG reduction projects can be of various types such as rural electrification using solar panels, installation of more energy- efficient boilers, renewable source-based power plants, such as those using biomass and wind and hydro energy, and afforestation, to name a few. However, these realised emission reductions should be in addition to what would otherwise have occurred. CDM has been operational since the beginning of 2006 with more than 1,086 projects registered. It is expected to produce CERs over 2.7 billion tonnes of CO2 equivalent for the period 2008-12. Currently, India has one of largest numbers of projects using CDM technologies. Out of the total 1,086 registered CDM projects worldwide, 348 (36 per cent) are from India, of which 224 projects have been issued CERs. With 949 projects already approved by the government and waiting final clearance from the UN, Indian projects seems to gain the maximum from this new environmental market.
(With inputs from Uma Rajarathnam, Head, Environment Practice, Enzen Global Solutions, an energy and environment consulting firm)
MYTHILI G. NIRVAN
Printer friendly
page
Send this article to Friends by
E-Mail
Property Plus
Bangalore
Chennai
Hyderabad
Kochi
Malabar
Thiruvananthapuram
