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Reforms to the UN-backed Clean Development Mechanism (CDM) carbon offsetting scheme designed to expand the initiative and make it easier and more cost effective for emission reduction projects to gain official approval to sell carbon credits moved a step closer to reality last week.
At a meeting in Bonn, the CDM’s Executive Board agreed to investigate new rules that would allow carbon capture and storage (CCS) and forestry projects to be included in the offsetting scheme and raise funds by selling officially sanctioned certified emission reduction (CER) credits.
The board said it would aim to report on its findings ahead of the UN-backed climate change meeting in Copenhagen where the development of new mechanisms to fund CCS and forest protection projects are expected to form a key part of any international agreement.
The board also announced revised rules designed to make it easier for emission projects based on the rollout of energy efficient lighting technologies to gain CDM approval and introduced a new methodology that will allow fuel cell projects to enter the scheme.
In addition to the new rules, the board also undertook further work on proposals to allow project developers to register a number of emission reduction projects under a single “umbrella” programme.
The CDM has been widely criticised for imposing too onerous an administrative burden on small-scale emission reduction projects, and the changes to the registration process, which look set to be adopted, are intended to make it easier for project developers to enter into the offsetting scheme.
In related news, the World Bank announced last week that it has completed its first sale of CER credits as a means of raining money for its Climate Adaptation Fund.
The bank sold 600,000 tons of CERs at an average price of
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