The Seventh Conference of Parties (COP-7) to the UNFCCC decided that Parties participating in CDM should designate a National Authority for the CDM and as per the CDM project cycle, a project proposal should include a written approval of voluntary participation from the Designated National Authority of each country and confirmation that the project activity assists the host country in achieving sustainable development.
Accordingly the Central Government constituted the National Clean Development Mechanism (CDM) Authority for the purpose of protecting and improving the quality of environment in terms of the Kyoto Protocol;
The composition of the "National Clean Development Mechanism (CDM) Authority" is as follows:
|1||Secretary (Environment and Forests)||Chairperson|
|2||Foreign Secretary or his nominee||Member|
|3||Finance Secretary or his nominee||Member|
|4||Secretary, Department of Industrial Policy and Promotion or his nominee||Member|
|5||Secretary, Ministry of New and Renewable Energy or his nominee||Member|
|6||Secretary, Ministry of Power or his nominee||Member|
|7||Secretary, Planning Commission or his nominee||Member|
|8||Secretary, DST or his nominee||Member|
|9||Joint Secretary (Climate Change), Ministry of Environment and Forests||Member|
|10||Director (Climate Change), Ministry of Environment and Forests||Member-Secretary|
The National Clean Development Mechanism (CDM) Authority receives projects for evaluation and approval as per the guidelines and general criteria laid down in the relevant rules and modalities pertaining to CDM in addition to the guidelines issued by the Clean Development Mechanism Executive Board and Conference of Parties serving as Meeting of Parties to the United Nations Framework Convention on Climate Change.
The evaluation process of CDM projects includes an assessment of the probability of eventual successful implementation of CDM projects and evaluation of extent to which projects meet the sustainable development objectives, as it would seek to prioritize projects in accordance with national priorities.
The National Clean Development Mechanism (CDM) Authority can recommend certain additional requirements to ensure that the project proposals meet the national sustainable development priorities and comply with the legal framework so as to ensure that the projects are compatible with the local priorities and stakeholders have been duly consulted.
The Authority ensures that in the event of project proposals competing for same source of investment, projects with higher sustainable development benefits and which are likely to succeed are accorded higher priority.
The Authority also carries out the financial review of project proposals to ensure that the project proposals do not involve diversion of official development assistance in accordance with modalities and procedures for Clean Development Mechanism and also ensure that the market environment of the CDM project is not conducive to under-valuation of Certified Emission Reduction (CERs) particularly for externally aided projects.
The Authority carries out activities to ensure that the project developers have reliable information relating to all aspects of Clean Development Mechanism which include creating databases on organizations designated for carrying out activities like validation of CDM project proposals and monitoring and verification of project activities, and to collect, compile and publish technical and statistical data relating to CDM initiatives in India.
The Member-Secretary of the National Clean Development Mechanism (CDM) Authority is responsible for day-to-day activities of the Authority including constituting committees or sub-groups to coordinate and examine the proposals or to get detailed examination of the project proposals.
The National Clean Development Mechanism (CDM) Authority has the powers:
|(a) ||To invite officials and experts from Government, financial institutions, consultancy organizations, non-governmental organizations, civil society, legal profession, industry and commerce, as it may deem necessary for technical and professional inputs and may co-opt other members depending upon need. |
|(b) ||To interact with concerned authorities, institutions, individual stakeholders for matters relating to CDM. |
|(c) ||To take up any environmental issues pertaining to CDM or Sustainable Development projects as may be referred to it by the Central Government, and |
|(d) ||To recommend guidelines to the Central Government for consideration of projects and principles to be followed for according host country approval. |