INDIA MOVES TO TAKE ADVANTAGE OF CLIMATE CHANGE CONTROL MECHANISMS

PROPOSES 6 RENEWABLE ENERGY PROJECT UNDER CDM

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The Ministry of Environment and Forests has endorsed 6 private sector renewable energy projects to be set up with the assistance of The Netherlands under Clean Development Mechanism (CDM). CDM enables developed countries to invest in developing countries in projects identified for mitigation of climate change in energy, agriculture, industrials processes, forestry and waste management sector. These 6 projects with a total power generation capacity of about 75MW based on biomass and wind energy will be located in Rajasthan, Maharashtra, Karnataka and Tamil Nadu. The projects are : 7.5MW biomass based power project by Ind-Barath Energies Ltd. in Maharashtra, 7.5MW biomass project by Kalpa Taru Energy Venture Private Ltd. in Ganganagar district of Rajasthan, 15MW grid connected renewable electricity supply project by Enercon (India) Ltd. in Nipani, Karnataka, 15 MW wind-biomass project (13MW wind and 2MW biomass) by Vestas RRB India Ltd. in Tamil Nadu, 14.45 MW wind power project, also by Vestas RRB India Ltd. in Tamil Nadu and 15 MW wind energy project by Suzlon Energy Ltd. in Tamil Nadu.

Clean Development Mechanism (CDM) is one of the three instruments provided under Kyoto Protocol on reduction of greenhouse gas emissions to enable developed countries meet their commitments for cutting down emissions of greenhouse gases. The other instruments being Joint Implementation and Emission Trading which enables cooperation only between developed countries to meet Kyoto Protocol reduction targets. Under CDM, developing countries benefit from investments for sustainable development while the investing developed countries get the greenhouse gas emissions reduction credits which could be adjusted against their reduction commitments under Kyoto Protocol. Though the Kyoto Protocol is yet to come into force, developed countries are permitted to invest in CDM projects in developing countries from the year 2000.

Estimates regarding the potential flow of funds into developing countries under CDM projects vary from about US $ 5 billion to US $ 25 billion per year. The actual flow depends upon the total quantity of greenhouse gas emissions to be reduced by the developed countries. The decision of USA not to ratify the Kyoto Protocol has significantly reduced the scope for investment in CDM projects. Some estimates reveal that Japan and USA alone would be required to reduce 700 million tonnes of Carbon emissions per year at a cost of US $ 5 per ton of carbon to US $ 20 per ton of carbon. An Australian study indicated that the developing countries could benefit to the tune of US $ 5.3 billions in thermal electricity generation alone, with China and India benefiting the most.