Clean Development Mechanism

Clean Development Mechanism

Distribution of Certified Emission Reductions (CERs) by project type as of October 2012

The Clean Development Mechanism (CDM) is a flexible mechanism defined in the Kyoto Protocol that allows industrialized countries to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries. The CDM is one of the three market-based mechanisms under the Kyoto Protocol, the others being Emissions Trading and Joint Implementation.

Overview

The CDM was designed to meet two objectives: to help industrialized countries meet their emission reduction targets in a cost-effective way, and to assist developing countries in achieving sustainable development. Under the CDM, projects that reduce greenhouse gas emissions can earn saleable Certified Emission Reductions (CERs), each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets.

Project Types

CDM projects can include a wide range of activities, such as renewable energy projects (e.g., wind, solar, hydroelectric), energy efficiency improvements, and reforestation projects. The distribution of CERs by project type is illustrated in the adjacent pie chart.

Process

The process of registering a CDM project involves several steps:

1. Project Design: The project developer prepares a Project Design Document (PDD) that outlines the project and its expected emission reductions. 2. Validation: An independent third party, known as a Designated Operational Entity (DOE), validates the project. 3. Registration: The project is submitted to the CDM Executive Board for registration. 4. Monitoring: The project developer monitors the emission reductions. 5. Verification and Certification: The DOE verifies the emission reductions and certifies the CERs.

Benefits and Criticisms

The CDM has been praised for its role in promoting clean technology and sustainable development in developing countries. However, it has also faced criticism for issues such as the additionality of projects, the distribution of projects, and the overall impact on global emissions.

Related Pages

• Kyoto Protocol
• Emissions Trading
• Joint Implementation
• Certified Emission Reductions