Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
The Clean Development Mechanism (CDM), a product of the Kyoto Protocol, is one such market instrument that can help industry as well as climate.
A number of small and medium projects in the field of energy efficiency and renewable energy, set up in India in the last two decades, owe their origin to the financing support available from CDM.
CDM is not redundant
· It is expected to generate as much as 1 billion tonnes of emissions reductions, with projects in 81 countries driving investment in a market worth $19.8 billion.
· The CDM has created a system where emission reduction opportunities are actively sought out, and an institutional framework that stimulates secure and focused global investment in sustainable development projects.
· In addition, the UN estimates that around 44% of all projects currently in the pipeline involve some form of technology transfer, with a significant proportion of this occurring in biomass energy and wind projects, methane avoidance projects, energy efficiency projects and landfill gas projects.
· The CDM can therefore be said to have made a considerable contribution to the development and transfer of knowledge and technology in developing countries, and positively impacted on local communities through the creation of jobs and infrastructure.
It will be redundant
Its transition to new mechanisms will have adverse impacts on carbon prices and investor sentiments in future markets.
· Double counting could compromise global ambition on reducing GHG emissions.
· The argument that a full-scale transition of CDM credits may flood the market and lead to deterioration in the carbon prices.
· Assuming that all CDM units available globally till 2020 are traded immediately, they may be fully absorbed by 2024 — as demand for credits for meeting the Paris commitments increases.
· The credits lying unsold with the CDM projects could lose their economic worth. Besides, the CDM projects will have to go through the process of validation and registration again with the new mechanism.
· The demand in EU, which has been the largest market for CDM credits, has declined sharply over the last decade because of regulatory barriers.
· In fact, more than 60 per cent of the credits may be used fully even before 2022 if we take into account the demand from airline operators to meet commitments under CORSIA — an emission reduction scheme for international civil aviation effective from 2021.
Shantanu tiwari 5 years
Please review
IAS Parliament 5 years
Try to cut short the introduction part and stick to word limit. Keep Writing.
Arunkrishna 5 years
Kindly review
IAS Parliament 5 years
Try to include data about CDM and some achievements. Keep Writing.
DHARU 5 years
Kindly review!!
Prithwish roy 5 years
