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CLEAN DEVELOPMENT MECHANISM (CDM) N.JAGADEESH N.JAGADEESH MARCH 15 2008 MARCH 15 2008
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The Clean Development Mechanism was

introduce to reduce the Global warming. The Global

warming is due to green house gas effect. So the developed

countries decided to reduce the global warming, because

of this they are formed the meeting in kyoto anddiscussed about this. This meeting is called the kyoto

protocol. In this meeting, they are groped the countries in

two types i.e Annex ²II countries ( 40 Countries) and Non

 Annex-II countries (130 countries), they are signed theabove meeting the Annex ² II countries to pay the

emission reduction of GHG by the Non Annex- II

countries.

INTRODUCTION

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Clean Development Mechanism (CDM)Clean Development Mechanism (CDM)CDM allows Annex II

(industrialised) countries to meet their emission

reduction targets by paying for green house gasemission reduction in non-Annex II (developing)

countries. Example , A company in India (a non

 Annex I country) switches from coal power to

biomass. The CDM board certifies that by doing

this the company has reduced carbon dioxide

emissions by 5,000 tons per year. It is issued with

5,000 CERs (Certified Emission Reductions).

Under the Kyoto Protocol, the United Kingdom

(an Annex I country) has to reduce its green

house gas emissions by 1 million tons of carbon

dioxide each year. If it purchases the 5,000 CERsfrom the Indian company, this target reduces

from 1 million tons/year to 9,95000 tons per

year making the goal easier to achieve.

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What is a CER?What is a CER?

CERs or Certified

Emissions Reductions are a ´certificateµ just like

a stock. A CER is given by the CDM Executive

Board to projects in developing countries to

certify that they have reduced green house gas

emissions by one ton of carbon dioxide per year.

For example, if a project generates energy usingwind power instead of burning coal, it can save

50 tons of carbon dioxide per year. There it can

claim 50 CERs (as one CER is equivalent to one

ton of carbon dioxide reduced). Developed

countries buy CERs from developing countriesunder the CDM process to help them achieve

their Kyoto targets.

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 Annex II countries Annex II countries Annex II countries (developed countries which

pay for costs of developing countries) Australia, Austria, Belgium, Canada, Denmark, Finland,

France, Germany, Greece, Iceland, Ireland, Italy, Japan,Luxembourg, Netherlands, New Zealand, Norway, Portugal,Spain, Sweden, Switzerland, United Kingdom, United Statesof America(23 countries and separately the European Union; Turkeywas removed from the annex II list in 2001 at its request to

recognize its economy as a transition one

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GAS GLAOBAL W ARMINGW POTENTIAL

Carbon dioxide (CO2) 1Methane (CH4) 21Nitrous oxide (N2O) 310

Hydrofluorocarbons(HFCs) 140-11,700Perfluorocarbons(PFCs) 7,000-9,200Sulphur hexafluoride(SF6) 23,900

SIX GREEN HOUSESIX GREEN HOUSEGASESGASES

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CountryNumberOf Projects

 Argentina 10

 Armenia 4

Bangladesh 2

Bhutan 1

Bolivia 2

Brazil 125

Cambodia 1

Chile 22

China 163

Colombia 10Costa Rica 5

Cuba 1

Cyprus 2

DominicanRepublic

1

Ecuador 10

Egypt 3

El Salvador 5

Fiji 1

Georgia 1

Guatemala 5

Honduras 13

India 316

Indonesia 13

Israel 10

Jamaica 1

Lao People's DemocraticRepublic

1

Malaysia 26

Mexico 101

Mongolia 3

Morocco 4

Nepal 2

Nicaragua 3

Nigeria 1

Pakistan 1

Panama 5

Papua New Guinea 1

Peru 10

Philippines 16

Qatar 1

Republic of Korea 17

Republic of Moldova 3

South Africa 13

Sri Lanka 4

Thailand 5

Tunisia 2

Uganda 1

United Republic of Tanzania

1

Uruguay 2

 Viet Nam 2

CountryNumberOf Projects

PROJECT REGISTERED BY 

HOST PARTY 

INTERNATIONAL CDM SCENARIOINTERNATIONAL CDM SCENARIO

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CountryCountry CERsCERs

 Argentina 330,919

Bhutan 474

Brazil 18,113,530

Chile 2,334,853

China 37,255,246

Colombia 152,949

Ecuador 275,444

Egypt 1,223,921

El Salvador 134,955

Fiji 18,176

Guatemala 197,928

Honduras 63,877

India 36,567,645

Jamaica 127,580

Malaysia 526,672

Mexico 3,396,342

Morocco 26,213Nicaragua 262,645

Papua New Guinea 52,388

Peru 104,693

Philippines 27,807

Republic of Korea 21,830,155

Sri Lanka 173,107

 Viet Nam 4,486,500

CERS ISSUED BY HOST PARTY 

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The total number of project registered by thehost country is 952 and 92 are requestingregistration (march 14 2008)

The total number of CERs issued by hostcountry is 127,684,019 (march 14 2008)

The statistics are given above

Expected CERs until end of 2012 by hostcountry total 1,170,000,000 CERs

1020 MW the Largest Hydro projectsubmited to CDM by Bhutan on Dec and gets2215.6 Million CERs by 2012

Commits industrialised countries to reducingtheir greenhouse gas emissions by, onaverage, 5% below 1990 levels in 2008-12

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INDIAN CDM SCENARIOINDIAN CDM SCENARIO

India ratified Kyoto Protocol on 26th August 2002

Hosting of COP-8 in Nov 2002 at New Delhi

The estimated CER volume reaches 441 million (till 2012) if they successfully registered by CDM-EB.

India is also the global leader in terms of registeredprojects with a total of 316 Indian projects (as of 14 MARCH2008).

CERs have already been issued for 165 Indian projects.

36.565 millions CERS issued to Indian Projects ason 14 MARCH 2008.

The majority of registered project in India are renewableenergy project focusing on hydropower, and wind energy

The Good News is that Reliance Industries Gained Rs 2.5Billion and JSW Steel Ltd Gained Rs 1.17 Billion by sale of Carbon Credits in this CDM Project

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China and India Account for 80%of market.

 Volume from India increasedfrom 3% in 2005 to 12% in 2006.

In China total project Registeredis 163 or one half of Indian project316, but the Issued CERs are largerthan the India.

India Issued 36.567 MillionCERs but China Issued 37.355 MillionCERs.

India is Second largest quantityof Issued CERs after China ² China

entered the market only in 2005.

In China there are 26 Governmentoffice for CDM but in India not yetopened

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WE ALL OF US

PUT OUR HANDS

TO SAVE

EARTH , FOR

FUTURE

GENERATION

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