Know More about CDM

CDM- Scope And world Progress

The CDM project development method has started out, particularly within the past one year since the Kyoto Protocol came into force. As of Valentine's Day, 2006, ninety three comes are registered with the CDM govt Board, whereas sixty two are submitted and square measure awaiting registration. For the newest standing, click http://cdm.unfccc.int/Projects. There square measure twenty seven approved baseline and corresponding observance methodologies. The trash Panel has consolidated many projected new methodologies into eight Approved Consolidated Methodologies (ACM) for the same old CDM comes. Similarly, the AR working party has approved one methodology to this point. 

Small scale CDM project activities

Since the registration of a CDM project is associate elaborate procedure requiring skilled information, it's associate inherent direct price. Besides, sure different charges square measure levied on registered CDM activities like registration charges and adaptation fees. Thus, the dealing price of following a CDM project activity is high. For comes that square measure tiny in size and generate low volume of CERs, the CDM EB has arranged  down a simplified procedure and separate simplified baseline methodologies. The registration fee applicable to those is additionally less at $ five,000.

Progress of CDM in India

CDM has created sensible progress in Bharat. The Ministry of atmosphere & Forests (MOEF) has shaped associate repose ministerial selected National Authority (DNA) known as CDM National Authority (CDM NA). Bharat is one in all the foremost active CDM host countries with 227 certified comes, twenty three registered comes and seven.45 million CERs as of January 2006. However, 2 registered comes involving HFC twenty three destruction generate the majority of those CERs. much, no comes involving energy/resource potency enhancements square measure being promoted by the tiny and medium enterprise sector.

Information Filtering System

An Information filtering system is a system that takes out unwanted or redundant information from an information stream using (semi)automated or computerized methods previous to presentation to a human user. Its major goal is the management of the information overload and increase of the semantic signal-to-noise ratio. To do this the user’s profile is compared to some reference characteristics. This distinctiveness may start off from the information item (the content – based approach) or the user's social environment (the collaborative filtering approach).

While in information transmission signal processing filters are employed against syntax-disrupting noise on the bit-level, the methods used in information filtering act on the semantic level.

CDM

The purpose of the CDM is to promote clean development in developing countries, i.e., the "non-Annex I" countries. The CDM is one of the Protocol's "project-based" mechanisms; in that the CDM is designed to promote projects that reduce emissions. The CDM is based on the idea of emission reduction "production". These reductions are "produced" and then subtracted against a hypothetical "baseline" of emissions. The emissions baselines are the emissions that are predicted to occur in the absence of a particular CDM project. CDM projects are "credited" against this baseline, in the sense that developing countries gain credit for producing these emission cuts.

The economic basis for including developing countries in efforts to reduce emissions is that emission cuts are thought to be less expensive in developing countries than developed countries. For example, in developing countries, environmental regulation is generally weaker than it is in developed countries. Thus, it is widely thought that there is greater potential for developing countries to reduce their emissions than developed countries.

From the viewpoint of bringing about a global reduction in emissions, emissions from developing countries are projected to increase substantially over this century. Infrastructure decisions made in developing countries could therefore have a very large influence on future efforts to limit total global emissions. The CDM is designed to start off developing countries on a path towards less pollution, with industralized countries paying for these reductions.

There were two main concerns about the CDM. One was over the additional of emission reductions produced by the CDM. The other was whether it would allow rich, northern countries, and in particular, companies, to impose projects that were contrary to the development interests of host countries. To alleviate this concern, the CDM requires host countries to confirm that CDM projects contribute to their own sustainable development. International rules also prohibit credits for some kind of activities, notably from nuclear power and avoided deforestation.

Clean Development Mechanism (CDM)

Clean Development Mechanism (CDM)

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 emissions 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.

The Offset Theory --- Part I

Dear readers, You worry about climate change or you don't !!! The concept of emission offset has been a rage in recent media coverages and news reports related to efforts on climate change. In this post I shall try to discuss out what offsetting means. In the next post i.e. Part II, we can discuss intricacies involved and how to ensure that offsetting is actually some thing real !!!!!

A list of Carbon offset providers is compiled at Eco Business Links where in comparison is also made on per tonne price of CO2. It goes as high as 30$ (where does that come from). Some of them may not be listed on this link.

What exactly is Carbon Offsetting?
Step 1: The green house gas emissions from a particular activity, service, events are calculated using various assumptions in a conservative manner. (Estimated to a higher side)

Step 2: These many emissions will be nullified by participating in a project activity which is reducing emissions. ( I know this is confusing let me try to explain this)

Lets say you are going to do an 'Activity - A' using certain set of technologies and processes or methods lets name it 'Approach -1'. (Like most possible approach to do this 'Activity A' in given conditions).

Now through some special enhancement in the process, technology etc. the way of doing things change and new approach is say 'Approach -2'.

Now Emissions ('Approach -1') > Emissions ('Approach -2'), this has to be true to claim emission reductions.

So emissions achieved in changing approach to do an 'Activity - A' becomes:

ER (emission reductions) = Emissions ('Approach -1') - Emissions ('Approach -2')

Now comes the part where your money comes in. Lets say the above equation results in about saving 100 tonnes of Carbon dioxide (CO2). now an estimate can also be made on difference of investment or return from 'Activity - A' to calculate extra cost gone into changing approach:

Extra cost = Investments + Returns ('Approach -1') - Investments + Returns ('Approach - 2')

Now this extra cost depends on so many factors like type of activity (change in fuel pattern, use of renewable sources for power, change in technology etc.), place of activity and any specific constraints for that project.

So coming back to Step 2, you actually buy carbon credits i.e. emissions reduced from this 'Activity -A' and nullify the emission you made in Step - 1.

From this we assume that cost of each tonne reduction of CO2 should be

Extra Cost / 100 tonnes of CO2 ( for this particular case as described above)

But believe me you might be ending up paying a lot more than that for each tonne.

So now we know how you can offset some or many of these:
Emission from air travel
Transportation i.e. fuel usage.
Big events, conferences. (That thing is in fashion)

Its happening

The recent developments
IPCC report.
500th CDM project registered.
Carbon credit Exchange in china.
my observation - a huge jump in intensity of articles related to climate change and Kyoto.
The number of articles with some critical views on Kyoto and CDM have also risen in numbers. Last two days I saw two of them; Crib over HFC -23, CDM is useless in business standard. I tried to discuss the issue of HFC23 on orkut forum and my dear friend Manpreet Singh summarised it very clearly

"The fact of the matter however is that HFC is a major green house gas with an enormous Global Warming Potential....So need to curb those emissions anyway....if not through CDM then i guess by law....just like Montreal banned CFCs...Kyoto or another new protocol should ban release of HFCs without thermal oxidation in refrigerant industry.....CDM gave an incentive....a huge incentive for these guys to curb these emissions.....so it might have resulted in a flood of carbon credits but the fact is those emissions have been minimised....There could have been ways to actually cap the credits from such projects in order to give them only the incentive that they deserve and not become a free rider....."

The point is very clear, the CDM board is constituted by learned people from different spheres and every methodology undergoes various stages of check and revisions before becoming eligible for use by project proponents. Moreover all these methodologies are open to discussions and clarifications. So the people who crib about this should learn that global warming is reduced by lowering such emissions.

Although I do agree with portion of second article which says, the need is to redesign CDM so as to see where can it e used effectively for actual development. Although we need not take any emission targets in near future, developing countries have been emitting decades before we even started any considerable fossil firing. There definitely is need to structure a policy to enable justified usage of carbon generated funds.

Why not India?

I hope most of you came across news articles such as these "China to set up Asia's first carbon-credit exchange", which made waves a few days ago.

The whole thing will be estalished by financial backing from Arcelor Mittal. The moment I read this the first thing that came across was why not India?