Clean Development Mechanism (CDM)
Clean Development Mechanism (CDM) was first defined in the Kyoto Protocol,1997 with the objective of achieving sustainable development by preventing climate change.The mechanism stimulates emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction limitation targets. The CDM allows carbon emission-reduction to earn certified emission reduction (CER) credits, where each CER is equivalent to one tonne of CO2. Thus a CER, commonly called carbon Credit, is reduction of 1 tonne of CO2 emission from the baseline of the project activity. These CERs can be traded & sold and used by industrialized countries to a meet a part of their emission reduction targets under the Kyoto Protocol. CDM offers following benefits –
- GHGs Reduction & Preventing Climate Change
- Sustainable Development,
- Energy Efficiency,
- Renewable Energy,
- Improvement of Air Quality,
- Technology Transfer,
- Cost Reduction,
- Employment Generation
- Poverty Reduction,
- Improving Living Conditions,
- SkillDevelopment etc.
India has the second largest number of registered CDM projects under the Kyoto Protocol. The majority of CDM registration in India belongs to energy industries. The renewable energy sector alone contributes to 50 per cent of the country’s estimated CER potential.
There is the National Clean Development Mechanism (CDM) Authority for approval of CDM projects at the national level while the State Climate Change Cell under Environment & Climate Change Department, Haryana is providing mentorship and necessary guidance in development of CDM Projects.