1) What is Kyoto Protocol?

In 1997, the Climate Convention held a conference in Kyoto, Japan. The aim of the conference
was to achieve agreement on a treaty that would require the industrialized world to limit its
emissions of greenhouse gases.

An agreement was made to set targets for reductions of industrialized countries’ emissions of
greenhouse gases: the Kyoto Protocol. It requires that industrialized countries, as a group, reduce their
emissions of six greenhouse gases by about 5% compared to 1990 levels in the period 2008–2012

The agreement allows states to meet their targets in other ways than by simply reducing emissions
domestically. Three so-called flexibility mechanisms were established to help states reduce their costs
in meeting targets.

Must know for you Under Kyoto Protocol:

1. International emissions trading allows industrialised countries to buy or sell parts of their
national emissions quota allocated by the Kyoto Protocol. Trade is limited to industrialised
countries. The government of each country may allow companies to buy and sell emissions
permits.

2. Joint implementation implies that an industrialised country pay for measures to reduce
emissions in another industrialised country. This will give the buyer the right to emit more
domestically, while the seller will be required to emit correspondingly less.

3. The Clean Development Mechanism (CDM) allows industrialised countries to acquire

emissions credits (the right to emit greenhouse gases) by paying for emissions reduction
measures in developing countries that do not have emissions targets. These measures must
also contribute to sustainable development in the recipient country. Detailed rules and
regulations to ensure that the emissions reduction measures meet all the requirements are
worked out.

2) What are the Greenhouse Gases Considered under Kyoto ?

- carbon dioxide (CO2),

- methane (CH4),
- nitrous oxide (N2O),
- hydroflourocarbons (HFCs),
- perfluorocarbons (PFCs) and
- sulphur hexafluoride (SF6).
3. Which is the Body which looks after or takes care of the global warming or climate change
around the world ?
UNFCCC: United Nations Framework Convention on Climate Change

4 .What are Annex I & Annex II Countries?

Developed Countries – Annex I (39 Countries)
Developing Countries – Annex II

5 .What is CDM?
Clean Development Mechanisms is flexible mechanism under Kyoto Protocol. Any initiatives or
project’s carried out by any individual or organization or a concern which reduce or arrest the emission
of GHG’s (Greenhouse Gases) that project or initiative may be applicable under CDM.

5. What is CDM and its benefits

The Annex I countries have been given an opportunity to provide financial resources to reduce GHG
emissions in developing countries, which have ratified the Kyoto Protocol through project based
mechanisms (Clean development Mechanism), and meet their targets than invest highly on domestic
projects in their own country.

Since India has given its approval to the Kyoto Protocol, there exist plenty of opportunities for
industries in India to avail financial benefits for projects, which reduce GHG emissions. The financial
benefits are estimated based on the quantum of reductions brought about by the projects.

The main goal achieved through CDM would be reduction of GHG’s and developing countries like
India, China, Brazil & Mexico can be benefited in two ways
a) Reduction in Emission of GHG’s
b) Incentives for reduction of GHG’s
Clean Development Mechanism Cycle:
1. Project Identification
2. Project Assessment (Whether Applicable under CDM eligibility Criteria)
Eligibility Criteria:
 Project should have started post January 2000
 Projects which are complying with the norms/laws of the
land are not eligible for CDM.
 Large Scale Project Category : > 15 MW
 Small Scale Project Category : < 15 MW
3. Project Documentation by the project promoter/consultant
a) PCN/PIN: Project Concept Note or Project Identification Note:- This document
consists of basic details about a project activity. The PCN format has been prescribed by the
MoEF (ref: http://cdmindia.nic.in/host_pcn_format.htm)
b) PDD: Project Design Document: This document discusses in detail about the project
activity. PDD consists of five sections namely:

A. General description of the small scale project activity

This section includes general and technical description of the Project

B. Application of a baseline and monitoring methodology

This section consists of Applicability Condition for Project as a CDM
project, methodologies applicable, “additionality argument”, amount of
emission reduction due to the project activity and monitoring plan of the
project activity.

C. Duration of the project activity / crediting period

This section consists of basic details about the project start date, project
completion date and the crediting period of ten years for the accrual of
Certified Emission Reductions (CERs) / Carbon Credits (There are two
types of crediting period i) Renewable Crediting Period – 21 Yrs ( 7 + 7+7)
ii) Fixed crediting – 10 years.

D. Environmental impacts
Environmental Impacts of the project activity

E. Stakeholders comments
This section consists the stakeholders (people who are affected by this
project activity) comments.
The standard format for PDD’s for Large scale and Small scale is prescribed by UNFCCC
(ref: http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html) (Small Scale)
(ref: http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html) (Large Scale)

4. DOE (Designated operational Entity)

Upon completion of the documents the project promoter has to appoint an DOE or validator to
assess the project activity and documents. The role of DOE is
a) to assess the project activity by carrying out a document review and physically verification
of the site
b) To upload the PDD on the UNFCCC website for Global Stakeholder Comment Period (30
Days).
If there any comments during the comment period the project promoter/consultant has to
address the same. The validator will issue the Validation protocol or report only after the
project promoter has clarified all the queries raised by the DOE.
5. DNA (Designated National Authority)
The DNA for the HCA – Host Country Approval for our country is MoEF. MoEF has a
separate climate change cell to take care of approvals for eligible CDM projects.
Upon successful completion of Validation and Obtaining the Host Country Approval the next
milestone is applying for registration. The project promoter has to pay one time registration fee to the
UNFCCC.

6. Request for Registration:

The DOE will upload the PDD and other relevant documents after the fee is paid. The PDD
again will be open for comments for a period of 30 days in case of Small Scale and 60 days in
case of Large Scale. During this tenure only DOE’s or UNFCCC Observers can post the
comments about the project. If there are no comments the project gets registered.
If there are 3 or more comments then the project activity doesn’t go for request for registration
and the process remains the same DOE and project promoter/consultant has to reply to the
comments.
Further action about the project activity registration is decided by the Executive Board (EB) of
UNFCCC during the EB meetings.
7. After Registration >>>> Verification:
Post registration of the project activity and after one year or six months of operation the
project should be assessed by the DOE or Verifier in this case. For a small scale project
activity the DOE who carried out the validation can be the verifier also. In case of large Scale
project the project would be verified by another DOE. The project promoter/ consultant have
to prepare a monitoring report. The DOE will come verify the project activity, monitoring
procedures and assess the total amount of emission reductions of the project activity. Upon
successful completion of Verification the DOE will issue a verification report.

8. Issuance of CERs:
 Post verification the DOE (Verifier) on behalf of the project promoter would request the
UNFCCC for Issuance of CERs, again the monitoring report and Verification report would be
uploaded on the web for a period of 15 days, after completion of 15 days the UNFCCC will
issue the CERs or Carbon credits.

9. Post obtaining CERs

The project promoter can trade or sell the CERs to any Parties/Buyers around the world.

The cycle (Ranging from 7 – 8) will continue for the next 10 years (In case of fixed crediting period).

The project timelines involved varies from 6 -10 months.