The CDM allows emission-reduction projects in developing countries to earn Certified Emission Reduction (CER) credits, each equivalent to one ton of CO2. These CERs can be traded and sold, and used by industrialized countries to a meet a part of their emission reduction targets under the Kyoto Protocol (source).
Smaller, poorer countries are greatly affected by pollution as they tend to be largely dependent on agriculture for their own population’s health and for their exports. Their lack of dense industry makes them low-polluters and their high concentration of agricultural communities are more at risk from the ill-effects of pollution from the high-polluters. Furthermore, smaller countries don’t often have the infrastructure necessary to avoid or fix problems caused by pollution. By receiving the sustainable development projects funded through the CERs traded and sold by the other countries, they are given a chance to improve their environmental conditions.
The CDM is the main source of income for the UNFCCC Adaptation Fund, which was established to finance adaptation projects and programmes in developing country. Parties to the Kyoto Protocol that are particularly vulnerable to the adverse effects of climate change. The Adaptation Fund is financed by a 2% levy on CERs issued by the CDM (source).
The CDM is meant to be a temporary measure and to push companies to institute their own programs to reduce emissions and improve efficiency. Newer and more efficient technologies lead to fewer emissions in the future. Fewer emissions lead to less CERs, but it also leads to cleaner air and a better environment.
Fox Flow Meters provide accurate accounting for the Clean Development Mechanism. Contact Fox to find out how we can help.
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