Clean Development Mechanism

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).

Salient Features of CDM

  • Participation in CDM project activity is voluntary and investments in CDM is market driven.
  • CDM activities must lead to quantified reductions in emissions.
  • 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.

Objectives of a CDM Project

  • GHG Emission Reduction.
  • Sustainable Development.

Availing of CERs

  • RRBEL provides Carbon Advisory service for availing of CERs.

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