Clean Development Mechanism (CDM) allows emission-reduction projects in developing countries to earn certified emission reduction (CER) credits, each equivalent to one tonne of CO2. The Kyoto Protocol established mechanisms for CDM. Projects go through validation, registration, verification and issuance of CERs. India has over 1,400 approved CDM projects expected to generate over 600 million CERs until 2012 across sectors like energy efficiency, renewable energy and waste management. Challenges include tapping potential from new sectors and developing large and programmatic CDM projects.

1. Clean Development Mechanism Ministry of Environment & Forests Government of India

4. Global Warming Potential (GWP) Above 10,000 (SF 6 ) Sulphur hexa fluoride 140 to 11700 (HFCs) Hydro fluoro carbons 560 ~ 9200 (PFCs) Per fluoro carbons (PFCs) 310 N 2 O Nitrous oxide 21 CH 4 Methane 1 CO 2 Carbon-di-oxide GWP Chemical Formula Green house gas (GHG)

6. Kyoto Reduction Commitments – 6.5 % - Italy – 6 % Canada – 6 % Japan – 12.5 % - United Kingdom – 21 % - Germany – 8 % (EU Burden Sharing Agreement) EU Reduction commitment for 2008-2012 [% of base year] Country

8. CDM Project Cycle - Basics Project Performance Monitoring by Project Proponent ONE TIME ACTIVITY RECURRING ACTIVITY Preparation of PIN - DNA Preparation of PDD - UNFCCC Host Country Approval To the Candidate Project Project Validation By UNFCCC Accredited DOE Submission for Registration (UNFCCC – CDM Executive Board) Certification & Issuance of CERs (DOE & UNFCCC)

13. Sectoral Scope Agriculture 15 Afforestation and reforestation 14 Waste handling and disposal 13 Solvent use 12 Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride 11 Fugitive emissions from fuels (solid, oil and gas) 10 Metal production 9 Mining/mineral production 8 Transport 7 Construction 6 Chemical industries 5 Manufacturing industries 4 Energy demand 3 Energy distribution 2 Energy industries (Renewable / Non-renewable sources) 1 Sectoral Scope No.

15. Approved methodologies - - 7 Metal production 1 - - Mining/mineral production - 5 1 Transport - - - Construction - 4 13 Chemical industry 5 10 11 Manufacturing industries - 7 6 Energy demand - 1 1 Energy distribution 7 Small Scale 7 30 Energy industries (renewable/non-renewable sources) Consolidated Methodologies Large Scale Sectoral Scope

16. Approved methodologies Contd/- 1 3 1 Agriculture 2 6 9 Aforestation and reforestation 3 7 6 Waste handling and disposal. - - - Solvents use - 2 6 Fugitive emissions from production and consumption of halocarbons and sulphur Hexafluoride 1 1 6 Fugitive emissions from fuels (solid, oil and gas)

23. CDM Regulatory Bodies| the basics COP/MOP EB UNFCCC secretariat SSCWG A/RWG MP AP RIT DOE supervises elects accredits supports recommends supports approves supports recommends

24. Portfolio of Host Country Approved CDM Projects

25. Portfolio of Host Country Projects approved . Sectors No. of Projects Energy Efficiency 431 Fuel Switching 76 Industrial Process 65 MSW 33 Renewable 474 Renewable (Biomass) 337 Forestry 9 Total 1,425

26. Sector-wise break-up : CERs expected till 2012 from Host Country Approved projects as of 21 August 2009. Sectors CERs (upto 2012) Energy Efficiency 216,369,909 Fuel Switching 60,314,965 Industrial Process 104,956,443 MSW 11,258,855 Renewable 121,047,877 Renewable (Biomass) 88,731,489 Forestry 8,039,713 Total 610, 719, 251

27. Investment in CDM Projects

28. Indian Projects Registered by CDM-EB . 2 Forestry Sectors No. of Projects Energy Efficiency 129 Fuel Switching 16 Industrial Process 22 MSW 9 Renewable 143 Renewable (Biomass) 129 Total 450

29. Portfolio of Host Country PSU Projects approved 2 Forestry Sectors No. of Projects Energy Efficiency 57 Fuel Switching 8 Industrial Process 20 MSW 2 Renewable 33 Renewable (Biomass) 2 Total 124

30. International Statistics

31. Expected Average Annual CERS from Registered Projects till 2012

32. CERS Issued by Host Party. 69,073,247 India

33. NATCOM ANALYSIS # Not counted in the national totals (All figures in Million Tonnes) 6 5 4 3 2 1 1228.54 0.178 18.083 817.023 Total (Net) National Emission 3.373 - - 3.373 Emissions from Bunker fuels# 23.233 0.007 1.003 - Waste 14.292 0.00004 0.0065 37.675 Removals-23.533 Land use, Land-use change and Forestry 344.485 0.151 14.175 - Agriculture 102.710 0.009 0.002 99.878 Industrial Processes 743.82 0.0114 2.896 679.47 Energy Including industry, transport residential and mining etc CO 2 eq. emissions N 2 0 CH 4 CO 2 emissions GHG source categories

34. How far we’ve come | Growing demand Number of projects / Millions of CERs (to 2012)

39. Thank You [email_address]