An Empirical Study of the CDM Projects: With Special Reference to Base Line Methodologies & Climate-friendly Technologies

With the Kyoto Protocol becoming legally binding on 16 February 2005, the Clean Development Mechanism (CDM) is becoming a key instrument for limiting greenhouse gas emissions (GHG) and promoting sustainable development. For both developing and developed countries to benefit from the CDM, it is important to establish increased awareness and understanding of its various aspects. Building capacities in the baseline methodology and assessment of GHG emission reductions/sequestration benefits of CDM projects are keys to the successful development and implementation of the CDM. This research paper aims to address these important issues and thus assist project developers in establishing baselines for CDM projects following guidelines based on relevant decisions of Conference of Parties (COP) and CDM Executive Board (CDM-EB) as well as other sources. The authors in this research study highlight the key CDM project criteria and eligible CDM projects. It further explains the basic concept of a baseline and its context in CDM. It then discusses the key concepts of a baseline and the key elements of a baseline methodology. The authors present the tools for assessment of additionality recommended by the CDM-EB for large scale CDM projects. The research study also discusses the application of the tool and highlights the key elements for assessing additionality in proposed CDM projects. The study focuses on small scale CDM (SSC) projects. The paper attempts to presents the guidelines for SSC and SSC categories recommended by CDM-EB. The study further discusses the recommended simplified baseline methodologies for SSC categories along with examples to explain the use of these methodologies. Finally, the process of submission of new project categories and methodologies to the CDM-EB is discussed. The author presents the steps for establishing baselines for large scale CDM projects. Baselines for large scale CDM projects can be established either using existing approved baseline methodologies or by developing a new baseline methodology. The paper also includes the approved baseline methodologies for grid connected power generation projects, solid waste management projects and industrial process improvement projects.