CDMs are of particular interest to developing countries, as it provides for investment in projects in developing countries for their sustainable development, while generating GHG abatements that may be Steps in CDM Process:CDMs are of particular interest to developing countries, as it provides for investment in projects in developing countries for their sustainable development, while generating GHG abatements that may be transferred to the annex 1 countries towards meeting their targets under Kyoto Protocol. CDMs address, transferred to the annex 1 countries towards meeting their targets under Kyoto Protocol.
CARBON CREDIT:
Growing concern about the biosphere and increasing awareness of the need for pollution control have given rise to the concept of `carbon credit'. The system is simple. Companies that are involved in any activity which helps reduce the carbon content of air, such as industries manufacturing energy-saving devices or setting up waste-processing systems, are given `credits'.
These can be used by other companies which emit carbon beyond a certain extent to avoid being penalised for the damage they cause to the atmosphere. Though the concept was suggested by the US in 1997, at the Kyoto Conference, it has only just started gaining momentum in India, especially in the light of large number of windmills functioning in the country.
However, the UK and Denmark are far ahead in implementing the trade and are closely followed by Australia, Netherlands and New Zealand. The `Kyoto Protocol' was drafted in November 1997 to give a full and final shape to the scheme and to draft a policy framework based on it. The ICC (International Carbon Credit Committee) is now working on this with various governments, businesses, investors and members of the public in Australia, Japan and other countries to investigate the proposed schemes, quantify them and assess their `credibility'.
