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Back You are here: Home Business Carbon Market CDM projects to reap $215.4 billion in investments in 2012

Carbon Market

CDM projects to reap $215.4 billion in investments in 2012

The Kyoto Protocol’s clean development mechanism has spurred billions of dollars of investment for projects that curb greenhouse gases and contribute to sustainable development.

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According to a report titled “Benefits of the Clean Development Mechanism 2012” released by the secretariat of the United Nations Framework Convention on Climate Change, around $215.4 billion in investments in C.D.M. are expected by the end of 2012.

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C.D.M. allows emission reduction projects in developing countries to earn certified emission reductions for every one tonne of carbon dioxide suppressed. These C.E.R.s can be traded and sold or used by industrialized countries to meet their emission reduction targets.

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According to the latest report, a total of $21.5-43 billion foreign investments have been brought in as a result of C.D.M. projects to date. While participating in C.D.M. has generated an estimated $3.6 billion estimated compliance savings for developed countries under the Kyoto Protocol.

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Top 5 technology and “know-how” suppliers for C.D.M. projects were identified as Germany, the U.S., Denmark, Japan and China.

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Waste-to-energy for C.E.R.’s

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Meanwhile, China has yielded another C.D.M. project with China Recycling Energy Corp announcing as of Nov 21 that its subsidiary Erdos TCH Energy Saving Co., Ltd completed C.D.M. registration of their project in Mongolia.

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China Recycling Energy Corp provides waste-to-energy technologies that capture and recycle heat, steam, pressure and exhaust from industrial operations to generate electricity. The registered project will generate power using the waste heat from ferro-silicon smelting electric furnaces from a facility of Inner Mongolia Erdos Metallurgy Co., Ltd.

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The project is located in Qipanjing Circular Economy Zone, Inner Mongolia, China. The project will generate around 269,762 megawatt hours annually and will meet part of the electricity demand of Erdos Metallurgy. The estimated amount of emissions reduction from this will be around 224,173 metric tonnes carbon dioxide equivalent.

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Currently around 5,064 projects are registered under C.D.M. in around 81 developing countries with more than one billion C.E.R.’s issued. – K. Jalbuena



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