CDM - Clean Development Mechanism
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The industrialized countries may generally fulfil their obligations to reduce GHG at home or abroad. The instruments to be applied in developing countries is be called Clean Development Mechanism (CDM-project).
CDM-projects can be launched already since the year 2000. In the year 2003 accredited independent third parties will investigate these projects, will validate the project design documents (PDD) and will certify the emission reduction units (CERs).
Clean Development Mechanism (CDM) is fast becoming reality. More and more nations are joining this initiative to save the planet. CDM and its stakeholders are still at a stage of evolution and hence, you need a trustworthy partner having exposure to the mechanics and competence to deal in an emerging field. |
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Benefits - CDM
How can CDM benefit your project?
• As a result of the Kyoto Protocol, carbon has become a tradable commodity with an associated value. One tonne of CO2 (carbon dioxide) reduced through a CDM project, when certified by a designated operational entity, is known as a CER (certified emission reduction), which can be traded. Revenue from CERs can form part of your project's annual cash infolow, equity, or debt.
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What types of projects can benefit from CDM finance?
All CDM projects must result in a net GHG reduction, as in the case of energy efficiency improvement, renewable energy generation, or carbon sequestration through afforestation and reforestation. Typical CDM projects fall into the following categories.
• Renewable energy
• Fuel Switching (in industry, transport, residential sector, etc.)
• Solid waste management
• Advanced coal-based power generation technologies
• Renovation and modernization
• Demand-side management
• Industrial energy efficiency improvement
Small-scale CDM projects are eligible for fast-track clearance procedures.
Who are the buyers of CDM credits?
• The buyers of CDM credits are mainly governments of developed countries, multilateral agencies, and private entities
Validation Process
Validation and Registration of CDM projects:
• Project validation cycle involves the posting of the proposed CDM project
• Analysis of the information provided on the proposed CDM project and its evaluation
• Registration of the CDM project with United Nations Framework Convention on Climate Change
Verification and Certification:
• Review of monitoring results and data collection systems linked to emission reductions from the project
• Review of established practices and accuracy of data collected including the monitoring equipment
• Review of the management system supporting the reported ER from the project. |
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