Carbon market experts favour simplified CDM procedures
New Delhi, March 15 : Carbon market experts support simplified Clean Development Mechanism (CDM) procedures and standardised criteria for sustainable development as preferred options for new market mechanisms, according to a FICCI survey released Friday.
The opinion of Indian carbon market players on the functionality of CDM and expectations from the new market mechanism, as defined at the Climate Change Conference in Durban (2011) and Doha (2012), have been captured by the Federation of Indian Chambers of Commerce and Industry (FICCI) Survey on 'Reformed CDM and Transition to New Market Mechanisms'.
CDM allows emission-reduction projects in developing countries to earn certified emission reduction (CER) credits, which can be sold to industrialised countries to enable them meet a part of their emission reduction targets.
For India, which has the second largest CERs in the carbon market, the significance of market-based mechanisms is enormous.
The FICCI survey received responses from 64 key CDM stakeholders, including CDM project consultants, project developers, auditors, traders and others.
Around 90 percent of the survey respondents believed that the current CDM framework was plagued by the issue of complicated operational procedures.
"Therefore, any new reform, which is well-thought out, should not further complicate the operational procedures," it said.
The survey found that adoption of standardised criteria for sustainable development would boost sustainable development in the region.