What is Climate Change?

Causes of Climate Change

Greenhouse Gases

Human Influence on Climate Change

Evidences & Effects of Global Warming

The Kyoto Protocol

Climate Change Mitigation

Climate Change Adaptation

Clean Development Mechanism

Joint Implementation

Emissions Trading

Clean Development Mechanism (Article 12, Kyoto Protocol)

Introduction:

The 1992 United Nations Framework Convention on Climate Change (UNFCCC) ("the convention") divided countries who are parties to the convention into three main categories: Annex I countries include the industrialized countries and countries with Economies in Transition (EIT), while annex II countries are the industrialized countries only (i.e Annex I countries without the EITs); developing countries are considered the non-annex I countries.

Clean Development Mechanism (CDM) is one of the initiatives proposed to enable parties to the  convention and those that have ratified the Kyoto Protocol meet their Kyoto commitments. CDM allows emission reduction projects that assist developing countries in achieving sustainable development and at the same generate certified emission reductions (CERs) which the investing countries can use towards meeting their Kyoto targets of carbon emissions reduction.

Under CDM, Annex I countries fund clean (alternative energy) technologies, such as wind and solar power projects, in the developing nations (i.e. the non annex I countries). The developing countries acquire sustainable development (of low or no carbon emissions potential) while the investing (annex I) countries that undertake the projects earn Certified Emission Reductions (CERs) that counts as credits towards meeting their Kyoto targets.

Annex I countries can also claim CERs for planting trees - afforestation and/or reforestation (which serves as carbon sinks) in the developing world. Afforestation/reforestation projects are the only allowed carbon sink projects for the first committment period of 2008 -2012. Also an annex I country can only use CERs genrated from sink projects for up to 1% of the country's emissions in its base year, for each of the five years of the commitment period.

The annex I countries are to refrain from using CERs generated through nuclear facilities to meet their emission targets.

The convention agreed that, since we have the same atmosphere worldwide, efforts towards carbon emissions reduction at a location result in the global reduction of 5.2% set by the Kyoto Protocol. As a result, annex I countries that are unable to reduce emissions at home can do so in other countries and will still be credited with emission reduction points that count towards their targets.

Typical CDM projects include:

• Renewable energy projects such as Wind Power, Hydropower, Biomass;

• End-use energy efficiency improvements;

• supply-side energy efficiency improvements;

• Fuel Switching projects;

• Reduction of industrial emissions (CO2 from Cement, HFCs, PFCs, SF6)

• Methane capture and re-use from coal mines, landfills and industrial  wastewater;

• Afforestation/reforestations

Other similar schemes to CDM are Joint Implementation and Emissions Trading

Implementation of CDM:

CDM is supervised by a CDM executive board. The Kyoto protocol was open for signature in 1997. It was not until 2001, that the parties to the protocol agreed on the modalities for the operation of the protocol's details at the Marrakech Accord.

Participation in a CDM project is dependent on the following conditions:

General:

1. Project must have approval by all parties involved;

2. Project must lead to sustainable development in the host (non-annex I) countries;

3. Project must result in real, measurable and long-term benefits in terms of climate change mitigation.

4. The reductions must also be additional to any that would have occurred without the project.

The parties involved:

1. Parties must participate voluntarily;

2. Each party must establish national CDM authority;

3. Each party must have ratified the Kyoto Protocol.

The annex I parties must, in addition to the above three conditions, have:

1. an assigned amount of emission reduction target;

2. a national system for the estimation of greenhouse gases;

3. a national registry, an annual inventory, and an accounting system for the sale and purchase of emission reductions.

©   2007 Environmental Business