3000 Approved Clean Energy Projects
CDM controls many firms that invest in projects regarding the reduction of climate warming emissions. These projects are for the developing countries, and the firms in return of such investments get credits as CERs i.e. certified emission reductions.
These types of projects started in 2005, and now it is working on clean energy projects in 71 countries. According to the U.N report, apart from the registered 3000 projects, 2600 more projects are under inspection phase. Another statement says that the growth of such projects are normal. As the percentage for the validating process of the projects in the first three months of 2011 was 17 % above than that of the same time period in 2011.
The U.N also said that until now 1,039 projects have made 600 million of CERs in total. According to the analysis, it has been found that the huge number of U.N carbon offsets is being generated from the CDM. An analyst said to the Point Carbon News that U.N has issued more than 110 million CERs this year, whereas in 2010 this figure was 132 million for the whole year. This analysis predicts that the yearly growth in 2011 will be making a record, which will result in lower prices.
Some developments in the process are going on, regarding the credits’ hand over to the investors, and back log is also cleared. This step has caused an increased in the issue process. According to the prediction of an analyst Thomson Reuters Point Carbon, 1,092 million CERs will have been issued to the investors by the end of 2012. Thus it predicts that 322-387 million CERs will be issued next year.
A meeting of U.N climate was held in Cancun last year in which the Governments agreed.
The procedures of the CDM play an important role in the fight for climate change. After the expiration of Kyoto Protocol in 2012, nations are doubtful regarding the change of CDMs. They are not sure whether to keep the old scheme or to expect radical changes. The Clean Development Mechanism is still developing and will keep on progressing. According to the statement of the UNFCCC executive secretary Christiana Figueres, CDM will constantly improve. Currently, the success is remarkable.
This success is not only regarding the quantity of the projects but also its ability to get investors from the private sector. The investments are improving people’s lives and environments in the developing countries.
Yet, the reputation of this scheme is questionable. Last year some developers tried to exploit the system, and they were equally accused of doing so. It is important that strict actions are implemented to avoid such attempts.