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Clean Development Mechanism |
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The Clean Development
Mechanism (CDM) is an arrangement under the
Kyoto Protocol allowing industrialized
countries with a Greenhouse Gas (GHG)
reduction commitment (so-called Annex 1
countries) to invest in emission reducing
projects in developing countries (
Non-Annex-1). Now, Annex-1 parties having
emission caps on their total emission, can
buy those credits from Non-Annex-1 parties
to fulfill their limitations. This will
create an economical market for carbon
credits and also more interest for GHG
reduction projects. In a simple way, when a
developing country (Non Annex-1) like
India
, implements a project which can reduce
certain amount of Green House Gases, this
amount gives credits, which are called
Certified Emission Reductions (CERs). |
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| Salient Features of CDM |
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Participation in CDM project
activity is voluntary and
investments in CDM is market
driven.
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- CDM
activities must lead to quantified
reductions in emissions.
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- The emissions reductions
achieved are transferable in the
form of CERs
to the investor country, the CERs
are a marketable commodity
under the Kyoto Protocol.
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| Objectives of a CDM
Project |
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| Availing of
CERs |
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- RRBEL provides service for
availing of CERs.
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