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Introduction: CDM & JI
What is the CDM & JI ?
The Clean Development Mechanism (CDM) and the Joint Implementation (JI) are two of the so-called Flexible Mechanisms of the Kyoto Protocol (Article 12). The third mechanism of the Kyoto Protocol is Emissions Trading. (Check out our webpage for information on the Linking directive)
The CDM and the JI are project based mechanisms, in other words, they are meant to promote projects in another country which lead to reduced emissions of greenhouse gases, compared to what would have happened in the absence of the project. In case of the JI projects, both countries must have a reduction commitment under the Kyoto Protocol. The CDM projects happen in countries without a reduction commitment (“non-Annex-I”).
These virtual reductions become a certified product of the project and can be bought and used by industrialised countries (“Annex-I”) to fulfil their targets under the Kyoto Protocol. A share of the proceeds will go into a fund that will pay for measures to alleviate climate change impacts in developing countries.
JI Projects can, except for the possibility of early crediting, generate emission reductions during the complete first commitment period (2008-2012). Projects that begin after January 1, 2000 may qualify as CDM projects.
Purpose
The purpose of the clean development mechanism and Joint Implementation is to assist Parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the Convention, and to assist Parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments under Article 3 of the Kyoto Protocol.
How the CDM works
The Marrakech Accords created a set of requirements for CDM projects. Project developers must have an independent certifier, called a Designated Operational Entity (DOE), affirm that their project satisfies these requirements. This is known as validation, so the DOE is commonly known as the validator. If the validator determines that the Marrakech Accords’ requirements have been met then they recommend to the CDM Executive Board that the project be registered, which constitutes final approval.
If the Board does not disagree with this recommendation within 8 weeks, the project is automatically registered and can begin monitoring and claiming credit for the reduction of emissions.
The reductions must be verified by another DOE - not the same one that did the validation - before the Executive Board can issue Certified Emission Reductions (CERs), ie. carbon credits. Monitoring, verification and issuance of CERs will continue for the entire period during which the project claims credit for reducing emissions .
For further information on the CDM: CDM rules, project cycle, opportunities for participation and submission of comments regarding particular projects, etc. visit the websites and documentation sections below.
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