Clean Development Mechanism Projects Research Articles

What is the carbon emission factor for the South African electricity grid?

One of the most important parameters for developing Clean Development Mechanism (CDM) project proposals in the electricity sector (both supply and efficiency) is the standard electricity ‘grid emission factor’, which represents the carbon dioxide related to a megawatt hour of electricity supplied or saved on the grid. While there are detailed guidelines from the CDM Executive Board on how to calculate this emission factor, the values used in registered CDM projects in South Africa vary widely, both due to changes in the rules over time and also to misapplication of the rules. This paper shows how the application of the latest guidelines gives a ‘combined margin emission factor’ for South Africa of 0.957 tCO2/MWh in 2009/2010. The variation in emission factors in the literature, as well as the importance of reducing the transaction costs for South African project developers, points to the need for an official published grid emission factor from the CDM host country authority in South Africa, the Designated National Authority (DNA), within the Department of Energy.

CDM and international technology transfer: empirical evidence on wind power

This article examines the effect of the Kyoto Protocol's Clean Development Mechanism (CDM) on the international transfer of wind power technologies. The analysis is conducted using patent data from over 100 countries during the period 1988–2008. It is found that transfers from Annex I countries to non-Annex I countries are significantly affected by the contemporaneous establishment of projects under the CDM. However, when taking into account the cumulative effect of CDM projects, the effect is negative. Finally, the effect of domestic absorptive capacity in the host country is positive and significant. Because involvement with the CDM may increase the latter, this is an important area for further research.

Local Actions, Global Impacts: International Cooperation and the CDM

We examine the Clean Development Mechanism (CDM) market as form of cooperative involvement between developing-host and developed-investor countries, likely to evolve into a form of Foreign Direct Investment (FDI) with opportunities for further collaboration. We use three variables to measure the level of cooperation, namely number of joint CDM projects, volume of CO2 abatement realized from the CDM projects, and volume of investment in the CDM projects. We rely on international economics and international relations literature to suggest that the levels of economic development and institutional development, energy structures of the economies, country vulnerability to various climate change effects, political constraints, trade, and historic relations between the host and investor countries are good predictors of the level of cooperation in CDM projects. The main policy relevant conclusions include the importance of simplifying the CDM project regulation/clearance cycle as an essential policy option for further growth of joint CDM projects; improving governance structures in the host and investor countries that would lead to higher political stability and trust between the countries for business, including CDM; and strengthening trade or other long-term economic activities that connect the countries for fostering CDM cooperation.

Derechos de emisión temporales procedentes de actividades de forestación y reforestación en el EU ETS

The authors have assessed the regulatory framework set by the UNFCCC (United Nations Frame Convention on Climate Change), the Kyoto Protocol and its Flexible Mechanisms, including the CDM (Clean Development Mechanism), and the EU ETS (European Union Emissions Trading Scheme). After this general overview, the article shows how afforestation and reforestation activities have been incorporated into the CDM process and its current consideration under the EU ETS. Transaction costs of these types of CDM project activities are analyzed, together with the state of the temporary allowances market. Finally, taking into account the above mentioned elements, the authors draw several conclusions on the opportunity and expectations of the future development of this market.

Optical Fiber Remote Multiplexed Sensing System of Methane and its Application in Clean Development Mechanism

An optical fiber remote multiplexed sensing system of methane is designed based on the methane absorption spectroscopy characteristic, by taking the triangular signal to modulate the wavelength of the tunable diode laser. The laser wavelength shift is carried out adaptive adjustment by the built-in gas calibration pond to realize the locking of a methane absorption line. The methane concentration monitoring is realized in the range of 0-100%. The application tests are found in a garbage power generation plant and several coal mine ventilation air methane power generation plants. The results indicate that the monitor has good performances in stability and sensitivity and a long-term precision of 10ppm is achieved. It is possessed of wide application in Clean Development Mechanism (CDM) projects.

Carbon Leakage from the Clean Development Mechanism

The Clean Development Mechanism (CDM) is an offset mechanism designed to reduce the overall cost of implementing a given target for greenhouse gas (GHG) emissions in industrialized Annex B countries of the Kyoto Protocol, by shifting some of the emission reductions to Non-Annex B countries. This paper analyzes how CDM projects may lead to leakage of emissions elsewhere in NonAnnex B countries. Leakage occurs because emissions reductions under a CDM project may affect market equilibrium in regional and/or global energy andprod-uct markets, and thereby increase emissions elsewhere. We also account for potential reverse or negative leakage effects in Non-Annex B from higher emissions cap in Annex B. Our conclusion is that net leakage typically is positive and sizeable, thus leading to an overall increase in global GHG emissions when CDM projects are undertaken. Leakage is greater when the different fossil fuel markets are more segregated. doi: 10.5547/ISSN0195-6574-EJ-Vol32-No4-2

Lost opportunities? A comparative assessment of social development elements of six hydroelectricity CDM projects in Brazil and Peru

Six hydroelectricity projects registered under the Kyoto Protocol Clean Development Mechanism (CDM), three each in Brazil and Peru, are reviewed to assess and contrast Peru's and Brazil's differing regulatory approaches to assessing the sustainable development (SD) benefits of CDM projects to social development. The Brazilian regulators rely exclusively on documents addressing a finite set of issues, whereas the corresponding Peruvian regulators visit the project site to engage in an ad hoc assessment of SD needs. Brazil's approach encourages foreign investment by providing some certainty of costs and prospects, yet the projects reviewed provided only limited SD benefits for social development. The Peruvian projects included significant and diverse social benefits for the local community. In order to achieve business confidence and social development benefits in the short to medium term, a hybrid of these approaches is recommended. However, successful implementation of this approach will require enhanced domestic non-governmental organization capacity, including additional funding. Ultimately, it appears that the solution lies in multi-stakeholder dialogue among mature regulators, civil society actors, local government and local community actors, and project developers.

The local climate–development nexus: Jatropha and smallholder adaptation in Tamil Nadu, India

The Kyoto Protocol has initiated Clean Development Mechanism projects in developing countries as one means to offset carbon emitted in developed nations. Biofuels may be a viable solution, but we argue here that it may also compete with local smallholder farming systems and labour resources. This study assesses the integration of tree bio-diesel crop Jatropha curcas into smallholder agriculture in Tamil Nadu, India using data collected from 66 farms through surveys and interviews. Jatropha cultivation carries significant risks for the smallholders. Jatropha competes for space and harvest labour with other market and subsistence crops and does not produce any economic returns until three years after planting. If the jatropha harvests or market price fail or fluctuate, smallholders could default on their loans. This risk could lead to significant changes in the land-holding class structure. Climate change policies, non-governmental organizationss, and national and regional governments should support landholders to sustainably integrate a new crop like jatropha into current holdings, otherwise the current alternative energy revolution could create more problems than it solves. Smallholders are particularly vulnerable to economic risk and crop failure exposure even with well-planned biofuel policies.

Exploitation of biogas power plant—Clean Development Mechanism project, Vizelj, Serbia

This case study of biogas power plant is designed in accordance with the existing energy policy that recognizes producers of energy from renewable sources as producers with privileged status and guarantees the purchase of energy at subsidized prices. The investor company revised its own energy policy and aligned it with the priorities of sustainable energy policy of Serbia. The paper presents an analysis of biogas power plant output (electrical and thermal energy), balance, sale, and potential prices on the market that are consistent with the incentives of energy policy of Serbia. In addition, special emphasis is given to the revenues that a biogas power plant realizes by using another mechanism of energy policy, which promotes gaining revenues by reducing pollution of the atmosphere. The authors also show the procedure, costs, and expected effects from the qualification of this power plant project for the Clean Development Mechanism project categories. Investing in a biogas power plant in Serbia costs 950 000 euros and is financed from the European Bank for Reconstruction and Development (EBRD) funds for the Western Balkans. Analysis of the parameters described in the paper can serve as a guide and example for potential investors in this field.

Performance Risk Associated with Renewable Energy CDM Projects

The clean development mechanism (CDM), part of the Kyoto Protocol to combat rising carbon emissions, allows projects to proceed in developing countries in return for providing carbon credits to developed countries. The feasibility of CDM projects is commonly justified through a combination of sale of the end product and carbon credits, which have a financial value, generated through carbon emissions avoided. However, the carbon credits assumed or estimated at the feasibility stage may not be realized or achieved on project completion; the issuance of carbon credits may be less than that originally estimated, thereby affecting project feasibility. This paper examines the performance risk associated with the discrepancy between estimated and issued carbon credits. Data for 227 renewable energy projects, comprising hydroelectric and wind power of varying scale and in multiple countries, are examined in establishing the performance risk. The study found that overall, the hydroelectric power projects performed...

The Clean Development Mechanism and low carbon development: A panel data analysis

The Clean Development Mechanism (CDM) of Kyoto Protocol, designed for the industrialized countries to earn emission credits by investing in greenhouse gas (GHG) emission reduction projects in developing countries, shall contribute to emission reductions and sustainable development in the host countries. However, whether the CDM is achieving its dual goals has been questionable. This research empirically investigates the long-run impacts of CDM projects on CO2 emission reductions for 80 eligible CDM host countries over 1993–2009. By allowing for considerable heterogeneity across countries, this research provides evidence in support of a decline in CO2 emissions associated with CDM projects. It serves to encourage developing countries to effectively develop CDM projects towards low carbon development.

Addressing the need for a clean development mechanism (CDM) specific project management strategy

Clean Development Mechanism (CDM) projects have additional technical, financial and regulatory requirements that are not fully addressed by classic project management approaches. Research has been done on individual novel concepts of the CDM, like additionality, but little has been achieved to address an overall CDM project management approach. CDM and project management literature was reviewed and the South African CDM Industry Association was used as a case study to gain insight into an appropriate CDM specific project management strategy. A stage-gate model was subsequently derived to align classic project management approaches with the additional requirements of CDM projects. Further research will, in time, determine the completeness and practicability of the proposed model.

Development of clean development mechanism (CDM) project of biomass densified biofuels in China.

Development of clean development mechanism (CDM) project of biomass densified biofuels in China.

THE CLEAN DEVELOPMENT MECHANISM AS ETHICAL DEVELOPMENT?: RECONCILING EMISSIONS TRADING AND LOCAL DEVELOPMENT

AbstractThis paper examines the ethics of the Clean Development Mechanism (CDM) in its architecture, processes and outcomes and its potential to allocate resources to the poor as ‘ethical development’. Two specific examples of CDM projects help us to explore some of the quandaries that seem to be quickly defining operating procedure for the CDM in its efforts to bring entitlementsto the poor. The paper concludes with reflections on the normative and social complications of the CDM and closes with three key areas of further investigation. Copyright © 2011 John Wiley & Sons, Ltd.

Technology Transfer Under the Clean Development Mechanism: An Empirical Study of 1000 CDM Projects

Against the backdrop of the enhanced importance of technology transfer in the context of the ongoing climate change negotiations, the potential of the Clean Development Mechanism (CDM) as a vehicle for technology transfer has been underscored. This study undertakes an empirical exploration of the extent to which the CDM is contributing to technology transfer and what is the nature of that technology transfer. While most of the multi-country studies on technology transfer under the CDM base their analysis on explicit claims on technology transfer made in the CDM Project Design Documents, this study enumerates technology transfer on the basis of an operational definition, which has been arrived at in light of the evolutionary theories of economic growth, and applies this definition to a dataset of the first 1000 registered CDM projects. Besides, this study undertakes a richer and more in-depth scrutiny of the various kinds of foreign involvement, explores the extent of interlocking of the various roles played by these foreign entities, and also considers their potential influence on technology transfer.

The Drivers and Outcomes of the Clean Development Mechanism in China

ABSTRACTThe Clean Development Mechanism (CDM) is a flexible market mechanism intended to reduce greenhouse emissions and promote sustainable development. China hosts a third of all registered CDM projects, and generates two‐thirds of all certified emissions reductions. Understanding the political economy of the CDM in China is therefore of critical importance in determining whether the CDM is an effective instrument to promote sustainable development and mitigate climate change. This paper discusses the nature and dynamics of CDM project development in China by analysing the 579 registered CDM projects operating in China as of 1 July 2009. The predominant activities are hydroelectric and wind power projects, with foreign involvement largely by European firms specializing in emerging carbon markets. The sustainability outcomes of projects in China are primarily economic, with environmental benefits largely restricted to cleaner production. The results suggest that the CDM is largely being employed as an ancillary device to attract foreign investment and further China's existing development agenda. We argue that the these results indicate the need for further reform of the CDM to achieve desired outcomes, and that China's approach to the design of integrated policy portfolios might be an example of how to achieve this. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

Using ecological criteria to develop CDM projects in Zhifanggou Valley, Loess Plateau, China

This study investigates the development of forestry Clean Development Mechanism projects on the Loess Plateau in China and analyzes its feasibility using Zhifanggou Valley as an example. The study considers the unique ecological environment and socio-economic situation of the project site, and applies the tree-shrub-grass model with the purpose of maximizing carbon sequestration in the area without compromising the quality of its environment. Income generation analysis and GIS analysis were applied in the research. Possible social and economic impacts of these projects are also discussed. Additional income opportunities for backward rural areas are explored, also in order to find new perspectives for conflicts between limited compensation periods to farmers involved in CDM projects and sustainable agro-forestry development. In particular, the study focuses on the impacts of forestry projects in rural areas on the Loess Plateau, from the perspectives of poverty reduction and, at the same time, ecological conservation policies. Results reveal that forestry CDM projects could generate CNY 140,000 annually for local residents or CNY 1240 per household when carbon sequestration of grasslands can be credited. Therefore, revenues generated by forestry CDM could make a significant contribution to vegetation conservation in these rural areas.

DESIGNING THE GREEN CLIMATE FUND: HOW TO SPEND $100 BILLION SENSIBLY

Confronting and responding to climate change is one of the foremost issues of our time, with the burden of response spread unequally around the globe. In general, climate impacts are hitting, and w...

Hydro energy potential of cooling water at the thermal power plant

The hydro energy of the gravity water flow from the coal-fired thermal power plant units to the river in an open cooling system of turbine condensers is determined. On the basis of statistical data for a long time period, the water net head duration curve due to the river annual level change, as well as the reduction of the hydro energy potential due to the thermal power plant overhauls periods, are evaluated in the case study of the Thermal Power Plant “Nikola Tesla B” in Serbia. A small hydro power plant is designed for the utilization of this hydro energy, and the economic benefits of the project are calculated. The internal rate of returns and pay back periods are calculated in dependence of the electricity price and total investment costs. The increase of profitability is assessed, bearing in mind that the plant might be realized as the Clean Development Mechanism project according to the Kyoto protocol. The obtained results show that the project is economically attractive, and it can be carried out with standard matured solutions of hydro turbines available at the market. Even for the relatively low electricity price from small hydro power plants in Serbia of 0.08 €/kW h the internal rate of return and the pay back period are 17.5% and 5.5 years.

Stakeholder preferences towards the sustainable development of CDM projects: Lessons from biomass (rice husk) CDM project in Thailand

This research applies both quantitative and qualitative methods to investigate stakeholder preferences towards sustainable development (SD) priorities in Clean Development Mechanism (CDM) projects. The CDM's contribution to SD is explored in the context of a biomass (rice husk) case study conducted in Thailand. Quantitative analysis ranks increasing the usage of renewable energy as the highest priority, followed by employment and technology transfer. Air pollution (dust) is ranked as the most important problem. Preference weights expressed by experts and local resident are statistically different in the cases of: employment generation; emission reductions; dust; waste disposal; and noise. Qualitative results, suggest that rice husk CDM projects contribute significantly to SD in terms of employment generation, an increase in usage of renewable energy, and transfer of knowledge. However, rice husk biomass projects create a potential negative impact on air quality. In order to ensure the environmental sustainability of CDM projects, stakeholders suggest that Thailand should cancel an Environmental Impact Assessment (EIA) exemption for CDM projects with an installed capacity below 10 MW and apply it to all CDM projects.