Clean Development Mechanism under the Kyoto Protocol

Made By – Gaurav Yadav (19llb027)

Parth Mendiratta (19llb051)
 ACKNOWLEDGEMENT

Working on this project on “Clean Development Mechanism under the Kyoto Protocol.” was a source
of immense knowledge to me. I would like to express my sincere gratitude to Prof. Mohit Vats for her
guidance and valuable support throughout the course of this project work. I acknowledge with a deep
sense of gratitude , the encouragement and inspiration received from Mr. Mohit Vats.

I would like to pay my sincere thanks to Asst. Prof. Mohit Vats for giving me the opportunity to study
and prepare a report on the ‘Clean Development Mechanism under Kyoto Protocol’. I would like to
thank my fellow members for their immense cooperation. This project helped me in developing my
research skills and I learn a lot from this.
Abstract

A country that is responsible for reducing pollution or preventing pollution under the Kyoto
Protocol may implement a pollution reduction project in developing countries under the
Clean Development Mechanism (CDM), as outlined in Article 12 of the Protocol. These
projects can generate certified rebate credits (CER), each equivalent to one ton of CO2 and
can be used to achieve Kyoto targets.

Many consider this machine to be a game changer. It is the world's first environmental
investment and credit program, which provides CERs, a way to reduce emissions.

The work of a CDM project may include, for example, a powerful rural electrification project
with solar-panel or the construction of energy-efficient boilers.

This approach promotes sustainable development and carbon offsets while allowing
industrialized nations to be more flexible in meeting their pollution reduction targets or
limits.
What is the clean development mechanism?

The CDM allows the developing world 's pollution reduction programs to obtain guaranteed
pollution reduction credits (CER), equivalent to one ton of CO2. These CERs can be
purchased and sold, and can be used by industrialized nations to fulfill part of their Kyoto
Protocol pollution reduction obligations.
The plant promotes sustainable development and pollution reduction while giving
industrialized nations some flexibility to meet their pollution reduction targets.
CDM is a major source of revenue for the UNFCCC Adaptation Fund, which was intended to
assist developing countries financially to implement and adapt programs. Groups on the
Kyoto Protocol are particularly vulnerable to the adverse effects of climate change. The
Adaptation Fund is funded by 2% of CER-issued CERs.

The UN Framework Convention on Climate Change includes the Clean Development

Mechanism (CDM) (UNFCCC). CDM, as the world's largest project-based regulatory
framework, allows public and private enterprises of high-income countries to purchase
carbon credits for low- and middle-income countries' projects (excluding Appendix 1). CDM
is involved in the development of standards and project validation. Authorized external
companies verify and validate credit credits (Selected Operating Companies).

CDM enables Annex I (developed) countries to fulfill part of their Kyoto obligations by
financing projects to reduce carbon emissions in low- and middle-income countries. Because
low-income countries have lower efficiency, lower labor costs, fewer regulatory
requirements, and more advanced technology, such projects are undoubtedly more expensive
than programs in high-income countries. The CDM aims to benefit a country that hosts long-
term development. CDM projects that provide issuance credits known as Guaranteed Release
Reduction (CERs), can be purchased and exchanged.
The UNFCCC & the Kyoto Protocol

The increase in scientific evidence of human encroachment on the global climate system, as
well as the increase in public concern for the environment, pushed the climate change into a
political agenda in the mid-1980's. In 1988, the United Nations Environment Program 5
(UNEP) and the World Meteorological Organization (WMO) established the
Intergovernmental Panel on Climate Change (IPCC) to provide policy makers with official
scientific information. The IPCC, comprising hundreds of scientists and experts on global
warming, was tasked with assessing the state of scientific knowledge about climate change,
assessing the potential environmental and social impacts, and developing practical policy
recommendations. Two years later, in 1990, the IPCC published a report concluding that an
increase in man-made greenhouse gases would “improve the effect of warming, which would
result in a measure of global warming” in the next century, and beyond. steps were taken to
limit pollution. The report confirmed that climate change was dangerous and called for an
international agreement to address the issue. Later that year, the Second World Climate
Conference echoed the same call. The United Nations General Assembly responded by
formally launching talks on a framework for climate change and establishing a "Government
Negotiation Committee" to advance the agreement. Negotiations for an international
agreement on global climate protection began in 1991 and led to the conclusion, in May
1992, of the United Nations Framework Convention on Climate Change (UNFCCC).
What is the Kyoto Protocol?

On December 11, 1997, the Kyoto Protocol was signed. It came into effect on February 16,
2005, after a lengthy verification process. The Kyoto Protocol now has 192 signatories.
In short, the Kyoto Protocol enshrines the United Nations Framework Convention on Climate
Change in action by committing developed and developing countries to limit and reduce
greenhouse gas (GHG) emissions in accordance with the agreed individual principles. The
agreement simply requires those countries to establish mitigation measures and actions and to
report regularly.
The Kyoto Protocol is based on the terms and conditions of the Agreement, and follows the
framework based on the annexure to the Agreement. Because it recognizes that industrialized
nations in particular are responsible for the current high levels of GHG in space, it only binds
them and places them heavily under the guise of "common but diverse responsibilities and
different capabilities."
Appendix B of the Kyoto Protocol establishes the commitment to reduce carbon emissions in
37 industrialized and developing countries, as well as the European Union. During the five-
year period 2008–2012, these targets achieve a 5% reduction in output compared to 1990
levels (initial commitment period).
The Kyoto mechanisms:

• Encourage the private sector and developing countries to contribute to efforts to reduce
pollution through technology transfer and investment.
• Assist countries with Kyoto's commitment to meet its goals by reducing carbon emissions in
a more economical manner.

Two approaches based on projects that feed the carbon market are CDM and JI. The CDM
includes investment in pollution reduction or development projects in developing countries
that contribute to its long-term development, while JI allows developed countries to take on
pollution reduction or development projects in other developed countries.
Appendix I The Parties to the Agreement must include information on national
communications under the Kyoto Protocol to indicate that their use of the methods is beyond
the scope of domestic action in order to meet their objectives. The lead branch of the
Compliance Committee is investigating this.
Conclusion

The full extent of the potential benefits available to developing countries under the CDM is
difficult to predict, but its potential to promote sustainable development and increase
investment flows in other countries is clear. With thoughtful planning and development of a
national CDM strategy, it can also help solve local and regional problems and advance
community goals. The CDM allows developing countries to participate in a global effort to
combat climate change at a time when other key development priorities can reduce the
available funding for GHG emissions reduction activities. The CDM's goal of advancing the
development goals of developing countries recognizes that only through sustainable
development will all countries be able to participate in climate protection.

CDM Projects Examples

For the following section, the acronym AIJ before the name of the host country signifies that
the example is taken from the Actions Implemented Jointly (AIJ) pilot phase, a forerunner of
the CDM developed under the UNFCCC.

Waste
Bio-Gen Biomass Power Generation Project
Power and heat production can be generated from agricultural wastes, such as peanut shells,
rice husks, coconut husks, orange processing waste, palm oil production waste, logging
residues, wood waste from sawmills etc. In many cases, a CDM project of this type will both
reduce GHG emissions and reduce a local pollution problem. One example is the 15 MW
biomass waste-to-energy project in Guaimaca, Honduras. The plant will utilize wood wastes
generated from forest products processing in the region. The waste, including sawmill 27 and
logging residues, are currently burned under uncontrolled conditions or disposed of in rivers
or low-lying areas. The project will reduce the CO2 emissions by 119 kt CO2 emitted from
the use of fuel oil in the baseline. The power produced by the plant will be sold to the
national utility and will displace electricity and associated emissions that would have been
produced by fossil-fuel facilities

Wind
AIJ-Mauritania
This project seeks to install small 1 kW wind turbines in 150 rural villages that lack access to
electricity. The wind turbines will supply power to battery-charging stations, which families
will use as their source of electricity. The electricity from the wind turbine will replace
kerosene, candles and batteries for most families. Those already using batteries will save long
transport times to bring their batteries to the central grid and no CO2 will be emitted when
their batteries are charged. The total annual emission reduction from the 7500 families in the
150 villages is calculated to be 0.88 kt CO2. In Mauritania, only the main urban centers are
electrified. The number of urban poor is rapidly increasing due to rural migration. This trend
is likely to continue in the absence of basic rural amenities. To improve the quality of life in
the rural area and stem the flood of migrants to 28 urban slums, high quality energy and
electricity must be brought online as the foundation for social and economic development.
Solar
Residential Solar Water Heating (South Africa)
South Africa is a dry country with one of the best solar regimes available, with solar energy
radiation at approximately 2190 kWh/m2/year. The proposed solar water-heating (SWH)
project is in a municipally-owned Hostels to Homes Development Project in Lwandle, a low-
income area in Cape Town. The community chose SWHs with back up (either electricity or
gas) as their preferred technology for water heating upgrades several years ago, but limited
funds and no direct incentives have meant that the project has not been implemented. The
project has been developed by the Energy & Development Research Center at the University
of Cape Town.