Assignment-II HEALTH, SAFETY AND ENVIRONMENT Clean development mechanism The Clean Development Mechanism (CDM), defined in Article

12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets. The mechanism is seen by many as a trailblazer. It is the first global, environmental investment and credit scheme of its kind, providing a standardized emission offset instrument, CERs. A CDM project activity might involve, for example, a rural electrification project using solar panels or the installation of more energy-efficient boilers. The mechanism stimulates sustainable development and emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction or limitation targets. A CDM project must provide emission reductions that are additional to what would otherwise have occurred. The projects must qualify through a rigorous and public registration and issuance process. Approval is given by the Designated National Authorities. Public funding for CDM project activities must not result in the diversion of official development assistance. The mechanism is overseen by the CDM Executive Board, answerable ultimately to the countries that have ratified the Kyoto Protocol. Operational since the beginning of 2006, the mechanism has already registered more than 1,650 projects and is anticipated to produce CERs amounting to more than 2.9 billion tonnes of CO2 equivalent in the first commitment period of the Kyoto Protocol, 20082012. Project design step in detail

Project Design Document (CDM-PDD): The project design document form was developed by the Executive Board on the basis of Appendix B of the CDM modalities and procedures. Project participants shall submit information on their proposed CDM project using the CDM-PDD form. Proposal of a new baseline and/or monitoring methodology: The proposed new baseline methodology shall be submitted by the designated operational entity to the Executive Board for review and approval, prior to validation and submission for registration of the project. Use of an approved methodology: An approved methodology is a methodology previously approved by the Executive Board and made publicly available along with any relevant guidance. When an approved methodology is used, the designated operational entity may proceed with the validation of the CDM project activity and submit the CDMPDD with a request for registration.

National approval Project participant secures letter of approval from Party. The Designated National Authority (DNA) of a Party involved in a proposed CDM project activity shall submit a letter indicating the following:

That the country has ratified the Kyoto Protocol. That participation is voluntary. And, from host parties, a statement that the proposed CDM project activity contributes to sustainable development

Validation Project design document is validated by accredited designated operational entity, private thirdparty certifier. Validation is the process of independent evaluation of a project activity by a designated operational entity against the requirements of the CDM as set out in CDM modalities and procedures and relevant decisions of the Kyoto Protocol Parties and the CDM Executive Board, on the basis of the project design document. Registration step in detail

Completeness check by secretariat Vetting by secretariat Vetting by Executive Board If a Party or three members of Executive Board request review, project undergoes review, otherwise proceeds to registration

Monitoring Project participant responsible for monitoring actual emissions according to approved methodology. Verification Designated operational entity verifies that emission reductions took place, in the amount claimed, according to approved monitoring plan. Verification is the independent review and ex post determination by the designated operational entity of the monitored reductions in anthropogenic emissions by sources of greenhouse gases that have occurred as a result of a registered CDM project activity during the verification period. Certification is the written assurance by the designated operational entity that, during the specified period, the project activity achieved the emission reductions as verified.

CER issuance step in detail

Completeness check by secretariat Vetting by secretariat Vetting by Executive Board If a Party or three members of Executive Board request review, issuance request undergoes review, otherwise proceeds to issuance

CDM benefits
The clean development mechanism was designed to meet a dual objective:

to help developed countries fulfill their commitments to reduce emissions, and to assist developing countries in achieving sustainable development.

CDM projects earn tradable, saleable certified emission reduction (CER) credits that can be used by industrialised countries to meet a part of their emission reduction targets under the Kyoto Protocol. Benefits of CDM projects include investment in climate change mitigation projects in developing countries, transfer or diffusion of technology in the host countries, as well as improvement in the livelihood of communities through the creation of employment or increased economic activity. This page serves to highlight where and how this occurs across the globe.
Submitted by Lalita khakhlary MBA ET