CDMs and CERs

Question 1

Clean Development Mechanism (CDM)

Answer 1

Annex 1 party/parties undertakes building projects in Non-Annex 1 countries to obtain certified emissions reduction CERs (credits).- related to Kyoto

• must be additional to what would have already occurred.
• is an “offset” market

Question 2

“Offset” Market

Answer 2

How you offset your own emissions without reducing within your own territory.

Question 3

CDM- Money Creation

Answer 3

Annex 1 countries are essentially creating money. Developed country is transferring CERs (credits) from a country without commitments to those with.

• Many like that CERs are not received until project successfully produces.
• However, administrative and overhead costs are more expensive than CERs received.

Question 4

CDM- Design Issues

Answer 4

1. Concern- deforestation projects shift WHERE people engage in deforestation but does not prevent it.
   * Initially limited to afforestation and reforestation and amount that that it could be used was capped
2. Concern- Countries would focus on low-hanging fruit because easy to deal with but you get a lot of credits.

Question 5

Approved CDM Methodologies

Answer 5

228 active approved methodologies

-examples- Re/Afforestation of degraded mangroves, mass transit, biodiesel production, etc.

Question 6

Registration numbers of CDM projects

Answer 6

7703 registered projects

• 2891 have so far issued CERs
• 248 programmes of activities (PoAs)

Question 7

Programmes of Activities (PoAs)

Answer 7

• Replicable projects, with low and physically spread GHG emission reductions
• Generally energy efficient/fuel switching

Question 8

CDM Project Distribution

Answer 8

• China and India= roughly 80% of projects
• Only 3% in Africa (4% of CERs)- South Africa, Maghreb States (Libya, Morocco, Algeria, Tunisia, Mauritania), Egypt
• Tendency to purchase reductions without becoming equity partner (companies participating but not investing in the project itself)