CDM - Clean Development Mechanism

Common Abbreviations

UNFCCC = United Nations Framework Convention on Climate Change, an international treaty which embraces e.g. the Kyoto-Protocol

IPCC = Intergoverment Panel on Climate Change, an international organization which reviews the climate change in scientific aspects

CER = Certified Emission Reduction, emission trading unit given by CDM-Executive Board for achieving emission reduction.

PoA = Program of Acitvities, a bunch of smaller projects

DNA = Designated National Authority, local instutituon which handles CDM issues in a certain country

DOE = Designated Operational Entity, a title for independent organizations involved validation & verification

What is it all about?

The Clean Development Mechanism was brought into life within the Kyoto Protocol (IPCC, 2007). It can be roughly described as emssions trade.
The aims can be summarized as follows:

1) To reduce the cost for emission limitation.

2) To support sustainable development for countries

At least since the Kyoto Conference 1997, most industrial countries are obligated to reduce their emission of climate-damaging gases, like CO2. However, this might entail very high costs, as it might be necessary to narrow the industrial capacity. Which country would voluntarily decrease its own economic performance? Therefore, the IPCC decided to set up a trading scheme, which allows industrial countries to reduce their emission by supporting & financing development projects in less-developed countries. It reduces the cost of climate-protection AND also encourages sustainable development.

However, this scheme is very complicated and bureaucratic. As for now, only a very few CDMs take place in Africa. Therefore, the PoA was developed. It gives the possibility to pool several small-scale projects into one big CER.

Project Cycle

Role of TAREA

TAREA wants to play a big part in conducting CDMs/PoA in Tanzania. We have an excellent initial position, as we embrace all major actors of the Tanzanian RE-Market. Together with CAMCO, we are currently developing a strategy to becomce a pioneering institution in that sector. The are still some issues in front of us, but facing the enormous bureaucracy expenditure, there is certainly need for an organization with market- and administrative experience. Besides that, our strength is networking, which can make things a lot easier for foreign as well as local partners.

Where can I find further information?

We recommend you to visit the online CDM Rulebook - a great resource with very detailed yet intelligible information. Furthermore, you might also have a look at Sustainable Energy Technology at Work , Wikipedia or the official UNFCCC website.