Climate change refers to the variation in the Earth's global climate or in regional climates over time. These changes may come from processes internal to the Earth, be driven by external forces (e.g. variations in sunlight intensity) or, most recently, be caused by human activities. It often refers only to the ongoing changes in modern climate, including the rise in average surface temperature known as global warming. The increased amounts of carbon dioxide (CO2) and other greenhouse gases (GHGs) are the primary causes of the human-induced component of warming. Governments and scientists all agreed that actions have to be enforced to abate climate change, thus, the United Nations Framework Convention on Climate Change (UNFCCC) was formed.
The UNFCCC adopted the Kyoto Protocol which assigns mandatory targets for the reduction of greenhouse gas emissions to signatory nations. It was adopted in December 1997, entered into force last February 2005 and is now ratified by more than 160 countries. Industrialised countries will reduce their collective emissions of greenhouse gases by 5.2% compared to the year 1990 (but note that, compared to the emissions levels that would be expected by 2010 without the Protocol, this target represents a 29% cut). The goal is to lower overall emissions of six greenhouse gases - carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, HFCs, and PFCs - calculated as an average over the five-year period of 2008-12. Clean Development Mechanism (CDM) is one of the arrangements under the Kyoto Protocol allowing industrialised countries with a greenhouse gas reduction commitment (so-called Annex 1 countries) to invest in emission reducing projects in developing countries as an alternative to what is generally considered more costly emission reductions in their own countries. Carbon Emission Reduction (CER) credits will be issued based on emission reductions (or removals by sinks) achieved by the project activities and Annex 1 parties can use their CERs to contribute to compliance of their quantified GHG emissions reduction targets. CDM must also assist developing countries in achieving sustainable development, while contributing to stabilization of greenhouse gas concentrations in the atmosphere. An industrialised country who wishes to get credits from a CDM project must obtain the consent of the developing country hosting the project that it will contribute to sustainable development. Then, using methodologies approved by the CDM Executive Board (EB), a project design document must make the case that the project would not have happened anyway if there was no CDM involved (establishing additionality), and must establish a baseline estimating the future emissions in absence of the registered project. The case is then verified by a third party agency, a so-called Designated Operational Entity to ensure the project results in real, measurable, and long-term emission reductions. Upon final approval by the Executive Board a number of Certified Emission Reductions, CERs, are awarded to the applicant based on the difference between the baseline and the actual emissions. |
CDM