RE Policy: Section 4: The CDM Process

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Guidelines on the formulation of Project Design Documents can be downloaded from the UNFCC website and examples of previous prepared projects can be viewed. Each country that wants to support the CDM approach needs to designate a National Authority which has the authority to coordinate the agencies responsible for environmental management

Methodologies

A key part of the CDM document will define the methodology to be used for determining the benefits of the project in terms of controlling CO2 emissions. As projects are put forward for approval, then a series of new methodologies are available for different types of projects to draw on.

Key rules for the CDM

  1. 1. Projects must provide real, long-term reductions of CO2 that can be certified by an approved third party (Operational Entity).
  2. 2. The emission reduction or carbon sequestration must be additional to those that would apply without the project.
  3. 3. For projects involving afforestation, only areas that were not under forest at the end of 1989 can be included.
  4. 4. Only projects starting from 2000 onwards will be eligible.
  5. 5. Projects need to select a crediting period for activities, either a maximum of 7 years, that can be renewed two further times, or a maximum of 10 years with no renewal option.

Where is CDM applicable?

  • Renewable energy
    • Wind power
    • Solar
    • Biomass power
    • Hydel power
  • Fuel switching (from fossil fuel to green fuel like biomass)
  • Energy efficiency measures related to
    • Boiler
    • Pumps
    • Turbines
    • Efficient cooling systems
    • Back pressure turbines etc.
  • Waste management
    • Capturing of landfill methane emission to generate power
    • Utilization of waste for generation of energy and energy efficiency projects
  • Transport
    • IC (Internal Combustion) engines at micro level
    • Fuel switch from gasoline and diesel to natural gas
    • Modal shift from air to train, road to train at macro level
    • Replacement of shipment of certain raw materials through pipelines
  • Afforestation/ reforestation /Carbon sequestration

A paper summarising the role of the CDM in Asia can be viewed here [PDF 261kB].

Reference should be made to Annex 3 [PDF 118Kb] which provides a detailed analysis of the CDM process and the recent situation with respect to different methodologies. In addition examples of projects are provided to provide the reader with a better idea of the type of documentation that need to be put together.

Additional References

For afforestation/reforestation projects, reference should also be made to the following reports which provide an outline for an approved methodology and examples of worked proposals.

Approved Methodology for A/R projects (China Proposal)
View Paper [PDF 365Kb]

Examples of project documents for forestry projects within Belize and South America provide further examples: -

Mountain Pine Ridge (Belize) Project document
View Proposal [PDF 1.8MB]

AES-Tiet Reservoirs Afforestation Project (Sao Paulo State)
View Proposal [PDF 2.8MB]

Some of the issues facing Sri Lanka in developing a portfolio of CDM projects is provided in the presentation given by KAK Kasturiarachichi of the Global Affairs Division of the Ministry of Environment and Natural Resources.
View Presentation [Powerpoint 894kB]

Renewable Energy Policy

  • Section 1
    General framework on policies for renewable energies and, in particular, biomass (Asia and EU)
  • Section 2
    Policies for renewable energies/biomass in Sri Lanka (status and main critical aspects, for grid-based and community initiatives)
  • Section 3
    Policies for renewable energies/biomass in India (status and main critical aspects, for grid-based and community initiatives)
  • Section 4
    The Clean Development Mechanism for Biomass projects in Asia (guidance on how to develop a project)
  • Section 5
    Conclusions and recommendations
Supported by the European Union under the Asia Pro-Eco Programme
Supported by the European Union under the Asia Pro-Eco Programme