Model Answer
0 min readIntroduction
The United Nations Framework Convention on Climate Change (UNFCCC), adopted in 1992, aims to stabilize greenhouse gas concentrations. Recognizing that developed countries have a greater responsibility, the UNFCCC introduced ‘flexible mechanisms’ to help them meet their emission reduction targets in a cost-effective manner. The Clean Development Mechanism (CDM) is one such mechanism, allowing developed countries to invest in emission-reduction projects in developing countries as an alternative to more expensive reductions in their own territories.
Clean Development Mechanism (CDM): A Detailed Explanation
The CDM, defined under Article 12 of the Kyoto Protocol, allows developed countries (Annex B parties) to earn Certified Emission Reduction (CER) credits by investing in projects that reduce emissions in developing countries (non-Annex B parties). These CERs can then be used to meet their Kyoto Protocol targets.
Operational Mechanism
- Project Types: CDM projects cover a wide range of sectors including renewable energy (wind, solar, hydro), energy efficiency, reforestation, and methane capture.
- Additionality: A key requirement is ‘additionality’ – the emission reductions must be additional to what would have occurred in the absence of the CDM project.
- CER Generation: Emission reductions are measured and verified by the Designated Operational Entity (DOE) and converted into CERs (1 CER = 1 tonne of CO2 equivalent).
- Executive Board: The CDM Executive Board oversees the CDM process, accrediting DOEs and approving project methodologies.
Benefits & Criticisms
CDM aimed to promote sustainable development in developing countries while assisting developed nations in achieving their emission reduction goals. However, it faced criticism regarding the additionality of projects, the environmental integrity of CERs, and equitable distribution of benefits. The Paris Agreement and the subsequent emphasis on Nationally Determined Contributions (NDCs) have led to a decline in CDM project registration.
| CDM Component | Description |
|---|---|
| Annex B Parties | Developed countries with emission reduction targets under the Kyoto Protocol. |
| Non-Annex B Parties | Developing countries hosting CDM projects. |
| CERs | Certified Emission Reductions – tradable credits representing 1 tonne of CO2 equivalent reduced. |
| DOE | Designated Operational Entity – independent body verifying emission reductions. |
Conclusion
The CDM, while a pioneering effort in carbon market mechanisms, faced challenges in ensuring environmental integrity and additionality. Though its prominence has diminished with the Paris Agreement, it laid the groundwork for future carbon trading schemes and highlighted the importance of international cooperation in addressing climate change. Its legacy continues to inform the design of newer mechanisms like Article 6 of the Paris Agreement.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.