Final Project By Paul Bouyounes
Clean Development Mechanism • In 1997, under the United Nations Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol was approved in Kyoto, Japan. • The Kyoto Protocol created the Clean Development Mechanism (CDM). • The CDM’s main goal was to promote sustainable development in developing countries and assist developed countries to reduce greenhouse gas emissions in the atmosphere and in turn, minimize harmful environmental impacts and problems.
CDM Projects • CDM helps combat rising carbon emissions by allowing renewable energy projects to proceed in developing countries. • The success of these projects is rewarded with certified emission reductions (CERs) or carbon credits that are achieved for reducing carbon emissions and can be sold or traded. CDM Project Locations Source: Parthan and Bachhiesl
Conversation • CDM is having some success in developing countries especially India. With a rapid growing economy, India has had many successful and productive clean energy projects. (Himanshu and Varun) • However, other developing countries have not had that much success because reduction in carbon emissions are not being met which in turn increases doubts, among investors, of the success of these projects. (Balatbat et al.)
CDM Barriers • CDM barriers are limiting developing countries’ growth in clean energy. • The most important one is trying to finance all these projects in some way. Source: Parthan and Bachhiesl
Solution • The United Nations could create a new policy or program focused on overcoming CDM barriers. • One way could be creating a CDM Fund program that collects all the money from selling CERs and uses it to purchase capital from companies to help optimize clean energy projects. This would keep the money obtained from CERs out of the hands of corrupt governments and provide new capital to developing countries creating jobs and means to utilize resources.
Sources • Balatbat, Maria C.A., Emily Findlay, and David G. Carmichael. "Performance Risk Associated with Renewable Energy CDM Projects." Journal of Management in Engineering 28.1 (2012): 51-58. Science Citation Index. Web. 21 Oct. 2012. • Himanshu, Nautiyal, and Varun. "Progress in Renewable Energy under Clean Development Mechanism in India." Renewable and Sustainable Energy Reviews 16 (2012): 2913-919. ScienceDirect. Web. 19 Oct. 2012. • Parthan, Binu K., and Udo Bachhiesl. "Barriers to Energy Efficiency under CDM." Slideshare. Renewable Energy and Energy Efficiency Partnership (REEEP) and Institute for Electricity Economics and Energy Innovation (IEE), 22 Nov. 2007. Web. 27 Nov. 2012. <http://www.slideshare.net/reeep/barriers-to-energy-efficiency-under-cdm>.