Problems of Clean Development Mechanism (CDM) Projects in India
Keywords:
Clean Development Mechanism, Certified Emission Reduction, Transaction Cost, Green House GasesAbstract
Clean Development Mechanism (CDM) projects aims at a cost-effective reduction of GHG emissions with technology and capital transfer from industrialized to developing countries. It is one of the most effective project based mechanism as suggested by the Kyoto Protocol 2005.About 84% of the total registered projects is concentrated in Asia and Pacific region and about 72% of the total registered projects is in renewable energy sector. India places 2nd after China in respect of establishment of registered CDM projects. India has many favourable factors for establishing of CDM projects. In this backdrop I have tried to identify the status of the CDM projects in India and its inherent problems. For collecting the data I have used basically the secondary source. Main problems of the Indian CDM projects are lack of transparency, high percentage of rejection of projects by Executive Board of UNFCCC, regional disparity in projects distribution, corruption in verification and certification of Certified Emission Reduction (CER) unit by Designated Operational Entity (DOE), high transaction cost , continuous fall in CER price in world market etc.
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