The Clean Development Mechanism
The growing market is calling for project related CO2
The CDM is based on Article 12 of the Kyoto Protocol. Article 12.2 sets out two equally weighted objectives: to assist investor countries in achieving compliance with their Kyoto Protocol commitments and to assist host countries in their efforts to achieve sustainable development. CDM host countries are those countries not listed in Annex B of the Kyoto Protocol – the countries generally described as developing countries. The investing countries are the world’s industrialized nations.
The modalities and implementation procedure for CDM projects are set out in the Marrakech Accords. These are designed to ensur that a real contribution is made towards achieving sustainable development in the hosting countries and to combate climate change. In contrast to the rules on Joint Implementation, those for the CDM provisionally entered into force in 2001 by way of a COP decision made in Marrakech (known as the ‘prompt start’). In the following years, the COP adopted additional guidelines for CDM implementation along with modalities and procedures specifically applicable to afforestation and reforestation projects. Following the Kyoto Protocol’s entry into force, the COP/MOP adopted all the COP’s provisional decisions regarding the CDM and issued further guidelines Decisions 3-8/CMP.1. The CDM Executive Board (EB) is responsible for drawing up detailed rules and guidelines and for monitoring CDM projects.
The Clean Development Mechanism (CDM) and Joint Implementation (JI) serve to promote bilateral cooperation. Such cooperation takes place not at state but at project level and involves private bodies (particularly businesses). This is why CDM and JI are often subsumed under the term ‘project-based mechanisms’. The idea is for project developers to register projects with the competent authorities.
The UN Framework for climate change projects had, however, already been set out this is our guideline and responsibility in cooperation with the Deutsche Bank AG for a project consulting service for our customers, with global experience and structuring activities.