CDM Regulations

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Small-scale renewable energy and energy efficiency projects that fit the development needs of many developing countries, can potentially be supported via the Clean Development Mechanism (CDM), one of the Kyoto Protocol’s flexible mechanisms for tackling climate change. However, there is concern that due to high transaction costs, as well as many existing barriers, very few investments will be made in small-scale projects, which are often the most suitable development option in countries such as India.
In view of this, the ‘bundling’ together of appropriate small-scale projects on a regional basis has been proposed as a way in which funding can be leveraged from international sources and transaction costs reduced. IT Power, IT Power India and the Energy Research Centre from the Netherlands (ECN) are carrying out a 2-year project to establish the capacity within India to enable individual small scale projects to be bundled as a single CDM project.
Overall Objectives:
To develop the necessary institutional capabilities to formulate and implement small scale CDM projects in India.
To provide a guide on how to bundle small scale projects under the CDM in developing countries.
To raise the awareness of the potential for investment in small scale energy projects which can gain funding through the CDM

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