Carbon Credits-CDM & JI

Projects

The likely projects that would be eligible under the CDM are:

Projects that lead to energy use efficiency on both demand as well as supply side

Projects that improve the production processes resulting in lower GHG emissions as well as local pollution.

Projects that substitute shift from fossil fuels to carbon free fuels or renewable energy projects.

Projects that substitute high carbon fuels for low carbon fuels. Though these projects are grey areas as some of these projects would have happened anyway due to economic reasons.

Afforestation and reforestation projects

Article 12 establishes three bodies to oversee the CDM: the representatives of the Conference of Parties (COP), an executive board established by the COP, and independent auditors to verify project activities. Apart from these bodies the countries that participate in the projects will have their management structures. The investing country to keep track of total CERs that have been generated by legal entities in these countries and also to monitor the devolution of emission reductions commitment to these legal entities. The host country will have an authority to oversee that project portfolio address the sustainable development needs of the country.

And how shall the process operate? Tentatively in the following manner:

Investor and host entity discuss and develop a project concept

This is submitted to the host country CDM authority for "sustainable development" contribution approval

Independent entities nominated by the Executive Boards certify the project for its CDMability and also the monitoring action plan to measure emissions and provides its recommendation for approval.

The project is than presented to Executive Board for acceptance and is registered as a CDM project.

Once the project becomes operational the project authorities apply for issuance of CERs. These will be issued once the independent verifiers designated by the Executive Board gives a verification certificate to the Executive Board. These CERs shall be issued as and when the emissions accrue.