Clean Development Mechanism and Environment Sustainability: An Overview

The Clean Development Mechanism (CDM)Clean Development Mechanism (CDM) is one of the three methods prescribed under Kyoto Mechanism to offset greenhouse gases’ (GHGs) emission of developed countries. The CDM aims to achieve the objectives of curbing emissions of GHG and promotion of sustainable developmentSustainable development in developing countries. Two commitment periods: 2008–2012 and 2013–2020 of the mechanism are over. The chapter analyzes the impact of CDM with global investment and host country perspectives with special reference to India. At global level till 2020, the total estimated emission reductions and certified emission reductions (CERs)Certified emission reductions (CERs) issued from registered CDM projects were 9580 million tCO2 and 2062 million, respectively. This denotes that CDM has helped in environment sustainabilitySustainability. However, there is concentration of the projects under CDMClean Development Mechanism (CDM) in few countries and few sectors. It is examined that Brazil, Chile, China, India, Indonesia, Malaysia, Mexico, South Korea, Thailand, and Vietnam accounted for 87.4% of total projects. These countries account for 89.4% and 87.1% of total estimated emission reductions in 2012 and 2020, respectively. They accounted for 89.7% of total CERsCertified emission reductions (CERs) issued till 2020. It can be inferred that few developing countries have benefitted from CDM projects. It is noticed that there is sectoral concentration of CDM projects, as well. Globally, 69% of projects under CDMClean Development Mechanism (CDM) were in renewable energy. Likewise, in India there is concentration of ongoing CDM projects in the states of Gujarat, Maharashtra, Rajasthan, and Tamil Nadu. About 66% of CDM projects in India were in renewable energy sector. The progress at both the global level and host country level is contrary to the Kyoto Protocol that emphasizes on equitable geographic distribution of projects under CDMClean Development Mechanism (CDM). For widespread benefits of sustainable developmentSustainable development, policies should be framed for greater inter-country and intra-country distribution, as well as diversification of CDM projects to different sectors. There is an urgent need to adopt measures to provide adequate expertise and support to Project Participants in developing countries to help them host projects under CDM.