National Clean Development Mechanism Authority

A new website – has been launched by the National Clean Development Mechanism Authority (NCDMA) in the Ministry of Environment, Forests and Climate Change.

This new website will capture the entire life cycle of CDM Projects. With step, the Ministry has taken another step in applying the principles of e-governance.

The on-line uploading of project related information in a module wise pattern will help to capture the entire life cycle of CDM projects. It will also enable monitoring of the projects at different stages.

This web-based application will promote transparency in operation and monitor sustainable development activities relating to the CDM projects in the country. It will be the first such web-based application developed globally in this direction.

The National Clean Development Mechanism Authority (NCDMA) was established in December 2003 for according Host Country Approval (HCA) to the CDM projects. Till April 30, 2015, it has accorded HCA to 2, 941 projects facilitating possible investment of about Rs. 579,306 crores in the country. These projects are in sectors of energy efficiency, fuel switching, industrial processes, municipal solid waste, renewable energy and forestry which spread across the country (covering all states in India).

As on 24th April 2015, 1, 564 out of a total of 7,629 projects registered by the CDM Executive Board are from India, which is the second highest in the world. Certified Emission Reductions (CERs) issued to Indian projects is 191 million (13.27%).

The Government mandated large-scale CDM projects to commit and earmark 2% of revenue generated from the sale of Certified Emission Reductions (CERs) to support sustainable development activities for the local communities.

However, the existing framework does not have the requisite information and also lacks information on the status of the registered/ unregistered projects accorded Host Country Approval. Thus, to improve the functionality of the Designated National Authority (DNA), it was decided by the Members of the NCDMA to capture the entire lifecycle of the CDM projects and also have provision to monitor the commitment of the project proponents for sharing of 2% of the CERs revenue.

In the second commitment period of the Kyoto Protocol (2013-2020), the number of CDM projects has come down drastically. In comparison, it may be seen that in 2012, there were 3, 227 projects registered with United Nations Framework Convention on Climate Change (UNFCCC) and in 2013, it was reduced to 307 projects.

In 2014 it was further reduced to 158 projects and in 2015 it is only 47 projects registered so far. Interestingly, in 2013, India has registered 115 projects, which are the highest by any country.

Last year, the NCDMA has accorded Host Country Approval to 76 projects and India registered 56 projects with UNFCCC in 2014. Thus, keeping a futuristic view, this website may help DNA to prepare for the future market mechanisms evolving under the UNFCCC.