The purpose of the Clean Development Mechanism (CDM) is defined in Article 12 of the Kyoto Protocol to the United Nations Framework Convention on Climate Change. The CDM has a two-fold purpose: (a) to assist developing country Parties in achieving sustainable development, thereby contributing to the ultimate objective of the Convention, and (b) to assist developed country Parties in achieving compliance with part of their quantified emission limitation and reduction commitments under Article 3.
The project proposal should establish the following in order to qualify for consideration as CDM project activity:
|Emission Additionality: The project should lead to real, measurable and long term GHG mitigation. The additional GHG reductions are to be calculated with reference to a baseline.|
|Financial Additionality: The procurement of Certified Emission Reduction (CERs) should not be from Official Development Assistance (ODA).|
It is the prerogative of the host Party to confirm whether a Clean Development Mechanism project activity assists it in achieving sustainable development. The CDM projects should also be oriented towards improving the quality of life of the poor from the environmental standpoint.
Following aspects should be considered while designing CDM project activity:
|1.||Social well being:The CDM project activity should lead to alleviation of poverty by generating additional employment, removal of social disparities and contribution to provision of basic amenities to people leading to improvement in quality of life of people.|
|2.||Economic well being: The CDM project activity should bring in additional investment consistent with the needs of the people.|
|3.||Environmental well being: This should include a discussion of impact of the project activity on resource sustainability and resource degradation, if any, due to proposed activity; bio-diversity friendliness; impact on human health; reduction of levels of pollution in general;|
|4.||Technological well being: The CDM project activity should lead to transfer of environmentally safe and sound technologies that are comparable to best practices in order to assist in upgradation of the technological base. The transfer of technology can be within the country as well from other developing countries also.|
The Coordinator/ Managing Entity of a PoA is required to submit the PoA-DD, CPA-DD, CPA-DD (Typical) & PCN to the National CDM Authority for HCA. CPAs (joining a PoA) that do not require any approval from any state /central agency e.g. replacement of bulbs, energy efficiency measures etc., the Coordinator/ Managing Entity of the PoA shall post facto inform the Member Secretary, NCDMA , the salient details of CPAs added on a bi-annual basis. However for CPAs that needs any state / central clearance, such CPAs shall be submitted to the National CDM Authority for approval as in the case of project based CDM activities.
The National CDM Authority (NCDMA) is a single window clearance for CDM projects in the country. The project proponents are required to apply to the administrator of National CDM Authority through the website by filling the User Registration form. Upon acceptance of the request, the project proponent shall fill in online the Project Concept Note (PCN) and also upload the Project Design Document (PDD). During the initial period, upto September 2009 , or as notified by National CDM Authority, the project proponents shall also submit 15 hard copies of PCN and PDD in proper format to Member Secretary, NCDMA along with soft copies in CDs, though covering letter signed by the project proponent.
The National CDM Authority examines the documents and if there are any preliminary queries the same are asked from the project proponents. The project proposals are then put up for consideration by the National CDM Authority. The project proponent and his consultants are normally given about 10-15 days notice to come to the Authority meeting and give a brief power point presentation regarding their CDM project proposals. Members seek clarifications during the presentation and in case the members feel that some additional clarifications or information is required from the project proponent, the same is informed to the presenter. Once the members of Authority are satisfied, the Host Country Approval (HCA) is issued by the Member-Secretary of the National CDM Authority.