Kyoto Protocol’s Clean Development Mechanism

Subject – Environment

Context – Coal ‘phasedown’ is a right, says Minister

Concept –

The Clean Development Mechanism (CDM), defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries.
Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets.
The CDM is the main source of income for the UNFCCC Adaptation Fund. The Adaptation Fund is financed by a 2% levy on CERs issued by the CDM.
Adaptation Fund (AF) was established under the Kyoto Protocol in 2001 and has committed US$ 532 million to climate adaptation and resilience activities.
Under CDM, CER units are issued by the UNFCCC which is the global administrator of Kyoto mechanisms.
It is the first global, environmental investment and credit scheme of its kind, providing a standardized emissions offset instrument, CERs.
The projects must qualify through a rigorous and public registration and issuance process.
Approval is given by the Designated National Authorities. Public funding for CDM project activities must not result in the diversion of official development assistance.
The mechanism is overseen by the CDM Executive Board, answerable ultimately to the countries that have ratified the Kyoto Protocol.