Abstract
Carbon finance through the Clean Development Mechanism (CDM) offers significant opportunity to a developing country like India for an array of greenhouse gas (GHG) emission reduction projects. However, the transaction cost associated with the development of CDM project is a serious barrier to many small scale CDM (SSC) projects due to which these proponents face many difficulties in attracting international investors. To reduce this transaction cost, individual small projects with similar project context can be bundled together to form a single CDM project. These SSC bundled projects that reduce GHG emissions can claim Certified Emission Reductions (CERs) under the concept of bundling. This paper presents 98 bundled CDM projects registered and issued worldwide till October 2014, out of which India has 29 projects, along with a case study on small scale hydro-electric power generation project. The visited project is a good example of clean technology that helps to reduce stress on conventional energy sources and is an improvement of social and economic life of local people. Energy efficiency, grid connected electricity generation, fossil fuels switching, thermal energy production and methane recovery are some of the methodologies in these types of projects. These methodologies reduce GHG emissions without harming the environment.
Highlights
Clean Development Mechanism (CDM) is an agreement under Kyoto protocol, which is a multilateral effort taken by United Nation Framework Convention on Climate Change (UNFCCC) to tackle climate change
This paper provides an insight into these bundled projects which are registered and issued by CDM Executive Board (EB) in order to achieve emission reduction in small scale projects
India is having maximum number of CDM bundled projects (29 numbers), out of which 24 projects deal with wind power, 2 projects are biomass based, 2 projects relate to hydro power and 1project is on energy efficiency
Summary
CDM is an agreement under Kyoto protocol, which is a multilateral effort taken by United Nation Framework Convention on Climate Change (UNFCCC) to tackle climate change. 192 countries have ratified the treaty to date It aims to reduce the GHG emissions by 5.2 % against the 1990 levels over the first commitment period of five years 2008-2012 [1,2]. In order to achieve this target developed countries invest in or finance projects that reduce emissions in developing countries (Non Annex-I) using clean technologies. After implementing these projects in developing countries, for every tone of CO2 that does not enter into the atmosphere, a developing country earns one CER. 93% of all the issued CERs come from five developing countries with maximum number of CDM projects. EB supervises the CDM under the authority and guidance of the COP and reviews the regional/sub-regional distribution of the CDM project activities. It maintains the registry of CDM projects and approves the methodologies for baseline and for monitoring project boundaries
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
