How helpful is programmatic CDM for medium and small scale industries?
Traditional CDM is suitable for individual project units that generally belong to a single owner. When there are several similar CDM projects, the option of bundling can be used effectively. Bundling is effective and appropriate in the case of a small number of medium to large units or small units in large aggregation that belong to a limited number of owners and occur in a short period of time. Programmatic CDM is more appropriate when a large number of small to medium units are geographically dispersed and occur over a period of time. This type of emission reduction activity can be very effective for small and medium enterprises in India. Programmatic CDM can lower transaction costs of the CDM process to bring in the emission reduction opportunities in small and tiny sectors into the carbon market. This initiative by the UN body enables emergence of energy service companies to finance and undertake initiatives, particularly for renewable energy and energy efficiency projects in small
