Study On The Implementations And Problems Of CDM In China's Renewable Energy

The purpose of the Clean Development Mechanism(CDM) is defined in Article 12 of the Kyoto Protocol to the United Nations Framework Convention on Climate Change.The CDM has a two-fold purpose:(a)to assist developing country Parties in achieving sustainable development,thereby contributing to the ultimate objective of the Convention,and(b) to assist developed country Parties in achieving compliance with part of their quantified emission limitation and reduction commitments under Article 3.Since CDM entered into force in 2005,it has been thriving in developing countries with an expanding international carbon mitigation market.China,the biggest developing country in the world,has a significant role in carbon trading market.China is undoubtedly one of the major players in the international CDM market,ranking first in terms of registered project numbers and first in terms of expected annual emission reductions of the registered projects.China's experience in CDM project development is of special importance for understanding the global CDM market.The challenges China is facing could also inform the international community for the purpose of improving international CDM rules.Currently,the number of CDM registration and amount of issuance from China's projects are the highest in the CDM market,of which,the renewable energy territory is the major CDM projects source.The renewable energy CDM projects development is coincidently crater to China's strategy of trying to reduce using fossil fuel,to optimize energy structure and to protect ecology and environment.The development of China's renewable energy CDM projects has its characteristics,at the same time,faces many obstacles.For propelling the development of renewable energy CDM projects,this paper deeply analyzes these obstacles including institutions,mechanisms and policies,making a comparison among China,India and Brazil.After that,this paper gives suggestions in optimizing the CDM managing institutions,simplifying the domestic approval procedure, organizing experts,regulating the consultancy service market and constructing CDM laws and regulations.There are two CDM cases at the end of this paper,dealing with CDM methodology selection,baseline definition,additionality demonstration and carbon mitigation calculation.It also analyzes the change of the project's Intern Rate of Return after considering CDM.