CDM Projects

CDM Projects are project activities under the Clean Development Mechanism. The purpose of this mechanism is two fold:

  • Assist Parties not included in Annex I of the Kyoto Protocol (i.e. the developing countries) in achieving sustainable development and contributing to the ultimate objective of the UNFCCC.
  • Assist Parties included in Annex I (i.e. the polluting, industrialised countries) in achieving compliance with their quantified emission limitation and reduction commitments under Article 3 of the Kyoto Protocol by using the CER accruing from such project activities to meet their quotas.

CDM Authority

CDM Projects are subject to the authority and guidance of the Conference of the Parties serving as the meeting of the Parties to the Protocol (CoP) and are supervised by the Executive Board of the Clean Development Mechanism.

Certification of CERs generated by CDM projects

Emission Reductions resulting from each CDM activity have to be certified by operational entities designated by this authority on the basis of:

  • Voluntary participation approved by each Party involved
  • Real, measurable, and long-term benefits related to the mitigation of climate change, and
  • Reductions in emissions that are additional to any that would occur in the absence of the certified project activity.

CDM to arrange funding

The Clean Development Mechanism is also supposed to help in arranging funding of certified project activities as necessary. This aim is not yet being achieved and is discussed separately.

Modalities and procedures with the objective of ensuring transparency, efficiency and accountability through independent auditing and verification of project activities have been evolved by the Conference of the Parties at its various sessions.

The COP ensures that a share of the proceeds from certified project activities is used to cover administrative expenses, as well as to assist developing country Parties that are particularly vulnerable to the adverse effects of climate change to meet the costs of adaptation.

Private and/or public participation

Participation under the CDM, and in the acquisition of CER, may involve private and/or public entities, and is subject to whatever guidance is provided by the Executive Board of the Clean Development Mechanism. CERs obtained during the period from the year 2000 up to the beginning of the first commitment period can be used to assist in achieving compliance in the first commitment period, which covers the period 2008 to 2012.