Kyoto Protocol's clean development mechanism reaches milestone at 7,000 registered projects
Kyoto Protocol’s clean development mechanism reaches milestone at 7,000 registered projects
(Bonn, 8 July 2013) – The Kyoto Protocol’s clean development mechanism (CDM), the international market-based tool that incentivizes greenhouse gas (GHG) emission reduction projects in developing countries, has passed the 7,000 registered projects milestone.
The 7,000th project will capture and destroy biogas created at two livestock (pig and chicken) farms in Cebu, Philippines, reducing annual emissions by 48,000 tonnes; the equivalent of removing 10,000 passenger cars from the road each year. The project will also reduce air pollution and odour, reduce instances of mosquito-borne illnesses, such as dengue fever, and increase job opportunities for the local community.
“Despite unfavourable market conditions, the CDM continues to provide a mechanism for real emission reductions and real sustainable development for those who wish to use it,” said Peer Stiansen, Chair of the CDM Executive Board. “The Board will continue its efforts to make the CDM the best tool it can be to reduce emissions and spur development, but Parties must do their part and set ambitious emission reduction targets to incentivize climate action and these types of green growth projects.”
The CDM is currently challenged by low prices for the certified emission reductions (CERs) produced by its projects. Due to a confluence of factors, CER prices have dropped 90 per cent in the past year, causing project registration and CER issuances to decline.
“The CDM will continue without a doubt, despite the current challenges it faces,” said Mr. Stiansen. “What remains to be seen is what Parties will do now to support the mechanism they created, and to ensure it continues to thrive and improve as a tool to help countries meet their emission reduction targets.”
There are registered CDM projects in 88 developing countries. Over the past 10 years the CDM has spurred more than USD 215 billion of low-carbon investment in developing countries, issued credits equal to 1.3 billion tonnes of CO2, and added more than 110,000 Mega Watts of renewable energy to global electricity grids.
About the CDM
The clean development mechanism (CDM) allows emission-reduction projects in developing countries to earn certified emission reductions (CERs), each equivalent to one tonne of CO2. CERs can be traded and sold, and used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.
With more than 7,000 registered projects in 88 developing countries, the CDM has proven to be a powerful mechanism to deliver finance for emission-reduction projects and contribute to sustainable development.
See also: cdm.unfccc.int
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