What is CDM(Clean Development Mechanism)?
CDM under Art 12 of the Kyoto Protocol allows Annex I (industrialised) countries to meet their emission reduction targets by paying for green house gas emission reduction in non-Annex I (developing) countries. What are CDM projects? A typical CDM project substitutes fossil fuel-based power generation with renewable energy or a project that improves existing energy efficiency levels. For example, a company in India (a non Annex I country) switches from coal power to biomass. The CDM board certifies that by doing this the company has reduced Carbon dioxide emissions by 100,000 tonnes per year. It is issued with 100,000 CER’s (Certified Emission Reductions). Under the Kyoto Protocol, the United Kingdom (an Annex I country) has to reduce its green house gas emissions by 1 million tonnes of carbon dioxide each year. If it purchases the 100,000 CER’s from the Indian company, this target reduces from 1 million tonnes/year to 900,000 tonnes per year making the goal easier to achieve. Who are t
