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Context for CDM and philosophy behind CDM
Some definitions
How CDM works
Basic eligibility criteria
Types of CDM projects
Disqualifications
Additionality and baseline assessment

Types of CDM projects

The introduction to climate change above has already indicated that Climate Change is accelerated by GHG emissions and mitigated by sinks like forests.

These facts create a useful paradigm for understanding the types of CDM projects that are possible.

On the emission side one primarily deals with energy, either demand side or supply side. For example, a coal-fired power station will generate substantial emissions of GHG. On the supply side, the following are examples of possible CDM projects that will decrease emissions:

- Changing the power plant technology so as to use cleaner-burning coal;
- Switching from coal to natural gas as a feed-stock for the plant;
- Replacing the facility in its entirety with a renewable energy source like a wind farm.

On the other hand, if the people in the area use less energy then the plant will need to produce less energy and will burn less coal, leading to lower emissions. This will be a demand-side saving. Examples of possible CDM projects will include:

- Changing (retro-fitting) buildings so that they need less heating or cooling;
- Changing light-bulbs in street lamps so that they use less energy.

There are also projects that do not directly involve the energy sector but that can diminish emissions. An example will be capturing the methane gas emitted by a landfill site and using it to generate electricity.

Regarding sinks, CDM will become a possibility if a new forest is being planted where none existed before or an extinguished forest re--established as this will create a new sink. This is known as Land Use Change and Forestry and is the subject of much debate. The CDM rules for this still need to be finalized but will be limited to afforestation and reforestation.

Finally, there is the distinction between normal CDM projects and small-scale CDM projects. Small-scale CDM projects are exempted from some of the formalities and requirements that apply to normal CDM projects. The idea is not to smother small projects by burdening them with high compliance costs that would make them unviable. The basic characteristics however stay the same.

For more information on disqualifications to CDM projects, kindly use the menu at the bottom left of the page.

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