What Is Clean Growth?

The Clean Development Mechanism refers to one of the flexible compliance mechanisms introduced in the Kyoto Protocol. The core content is to allow its contracting parties, developed countries, and non-contracting parties, developing countries, to transfer and obtain project-level emission reduction offsets, so as to implement greenhouse gas reduction projects in developing countries. According to the definition of Chapter 12 of the Kyoto Protocol, the CDM mainly solves two goals: to help non-Annex 1 Parties to develop sustainably and make their due contributions to the ultimate goal; to assist Annex 1 Parties to implement project-level reduction. Transfer and acquisition of displacement offsets. The mechanism stipulates that certified emission reduction units obtained by non-Annex 1 Parties to implement project restrictions or reduce greenhouse gas emissions can be transferred to Annex 1 contracting parties after being certified by an operating entity designated by the UNFCCC's Conference of the Parties. Other investors such as governments or businesses. A portion of the proceeds from certification project activities will be used to cover management costs and support developing countries that are particularly sensitive to the negative effects of climate change to meet the needs of climate change adaptation. ^[1]

Clean development mechanism

The clean development mechanism means "

As of 2011, China has approved 3105 CDM projects, of which Yunnan Province has the most, with 331; followed by Sichuan Province, with 292. The estimated annual emission reductions of approved CDM projects are 543 million tCO2e, of which Sichuan Province has the largest estimated annual emission reductions. From the perspective of the composition of emission reduction types of approved CDM projects, new energy and renewable energy CDM projects accounted for the largest proportion, accounting for 71.63%, followed by energy conservation and energy efficiency. Judging from the composition of the emission reduction types of the approved annual emission reductions of CDM projects, new energy and renewable energy CDM projects are estimated to have the largest annual emission reductions, accounting for 50.91%, followed by energy conservation and energy efficiency, accounting for 15.28%.

As of 2011, China has registered 1503 CDM projects, of which Yunnan Province has the most, with 170; followed by Inner Mongolia. Registered CDM projects have an estimated annual emission reduction of 334 million tCO2e, of which Zhejiang Province has the largest estimated annual emission reduction. From the perspective of the number of registered CDM projects, the type of emission reductions, new energy and renewable energy CDM projects accounted for the largest proportion, accounting for 80.73%, followed by energy conservation and energy efficiency. From the perspective of the composition of the types of emissions reductions of registered CDM projects, the estimated annual emissions reductions of new energy and renewable energy CDM projects are the largest, accounting for 46.48%.

As of 2011, China has issued 500 CDM projects, including 51 in Inner Mongolia and 49 in Yunnan Province. CDM projects have been issued with an estimated annual emission reduction of 186 million tCO2e, of which Zhejiang Province has the largest estimated annual emission reduction. From the perspective of the composition of emission reduction types of CDM projects issued, new energy and renewable energy CDM projects accounted for the largest proportion, accounting for 77.40%, followed by energy conservation and improvement.

The CDM will include potential projects in the following areas:

1 Improve the terminal

Project identification and presentation

The first step in the CDM project cycle is the identification and representation of potential CDM projects. A CDM project must have real, measurable, and additional emission reduction effects. In order to determine whether the project has additionality, the emissions of potential projects must be compared with the emissions of a reasonable reference scenario called a baseline. Project participants should adopt approved methods to develop baselines based on the specific conditions of the project. . These baseline methodologies have been developed on the basis of three methods under the Marrakesh Agreement:

1 actual actual or historical emissions;

2 Emission levels of representative technologies that are economically attractive for investment;

3 The average emission level of similar projects with the best 20% of similar environmental emission performance over the past 5 years.

CDM projects must also have a monitoring plan to collect accurate emissions data. The monitoring plan forms the basis for future verification. It must have a high degree of confidence to ensure that the emission reductions of CDM projects and other project goals are indeed achieved. The monitoring plan should also have the ability to monitor the project baseline and its risk of failure in emissions. The monitoring plan can be developed by either the project developer or a specialized agency. Emission baselines and monitoring plans must be designed according to approved methods. If project participants prefer a new method, the method must be approved and registered by the executive board. Project participants can choose the time limit for obtaining the CER of the project: 10 years; or 7 years, but may continue twice and reconfirm the baseline (21 years maximum).

All countries wishing to participate in the CDM must appoint a national CDM authority to evaluate and approve CDM projects and serve as the main point of contact for CDM activities. Although international operating procedures provide general guidelines on baselines and additionalities, it is the responsibility of each developing country to determine its own project approval criteria. Project host countries and investors must also prepare project design documents in the following format:

1 a description of the project;

2 Explain the method of determining the baseline;

3 Project schedule and CER acquisition deadline;

4 monitoring methods and plans;

5 Calculate greenhouse gas emissions by emission source;

6

The services that can be provided in the CDM field include the following aspects:

Training

BSI ( British Standards Institute ) offers 1 or 2 days training courses. The course covers the detection, reporting, verification, verification and trading of greenhouse gas (GHG) emissions, and introduces the status of various global emissions trading systems.

2. Seminars and live exchanges

Enterprise-based workshops aimed at enhancing capacity building and policy impact are a good opportunity to share best-practice technologies in emissions reporting, verification, and trading.

3. Gap analysis before verification

BSI provides a status check on the types and amounts of greenhouse gas emissions, including strategic assessments of GHG data risks and initial reviews of substantial issues to consider the determination of baselines for current best practices.

4. Validation

BSI is cooperating with some international organizations and institutions representing major industries. Some industry-developed GHG bills have been validated and entered the installation phase under BSI's global recognition and independent validation procedures, pending their subsequent implementation and verification.

5. Verification

BSI can verify the project report's guidelines or annual emissions, and can provide organizations with judgments about the reliability, consistency, and accuracy of reported emissions.

1. Operation management rules

Participants in CDM project activities must be Chinese-funded or Chinese-controlled enterprises. The basic rules of operation are: 1. voluntary participation of the parties; 2. government approval; 3. bringing real, measurable, and long-term greenhouse gas emission reduction benefits; 4. must be additional; ("extra" It means that the emission reduction benefit brought by the clean development mechanism project must be additional, that is, it will not happen without the project activity.) 5. It belongs to the priority development area of the host country and local government and brings technology transfer.

The National Development and Reform Commission is the competent authority for the Chinese government to carry out CDM project activities. It has a national clean development mechanism project review board and a national management agency. The co-chairs of the review board are the National Development and Reform Commission, the Ministry of Science and Technology, the deputy team leaders are the Ministry of Foreign Affairs, and the member units are the State Environmental Protection Administration, the China Meteorological Administration, the Ministry of Finance and the Ministry of Agriculture.

The proceeds from the project's transfer of emission reductions are owned by the Chinese government and the project implementation enterprises. Different types of emission reduction gases are distinguished and different distribution ratios are implemented.

2. CDM project operation process

The entire process of the CDM project is: looking for foreign partners preparing technical documents conducting business negotiations for transactions domestic approval international approval monitoring of project implementation emission reduction verification emission reduction registration and transfer transfer revenue commission.

When applying for a CDM project, an enterprise first applies to the National Development and Reform Commission through the science and technology management department; the National Development and Reform Commission then organizes the review of the application project, and then the National Development and Reform Commission conducts approval procedures with the Ministry of Science and Technology and the Ministry of Foreign Affairs.

The cooperation of enterprises during the implementation of CDM projects is crucial. Based on the experience of the Dutch CERUPT project. During the qualification qualification stage of bidding, the Chinese side shall provide in English: 1. the project concept sheet; 2. the project approval letter; 3. the business license and code certificate of the enterprise; 4. the company's three-year financial statements; Proof; 6. Proof of the company's financial credit status.

In the second stage of the bidding, the Chinese side shall provide with the help of the consulting company: 1. project design documents; 2. approval reports and conclusions; 3. purchase agreements; 4. submission schedules; 5. project approval letters.

CDM project cycle introduction:

Item identification

Make a preliminary judgment as to whether this project is a CDM project.

Project Design

When the project complies with the CDM standards, a project design document (PDD) needs to be completed. The format of the design document is determined by the Executive Board of the United Nations CDM.

Project approval

The CDM project needs to be approved by the host CDM authority designated by the host country. At present, China's CDM authority is a member of the National Development and Reform Commission. China's CDM projects need to obtain formal approval documents issued by the Development and Reform Commission.

Project validation

The project developer needs to sign a contract with a designated operating entity to be responsible for its review and certification. Only after completing this work can this project become a legal CDM project. According to the different types of projects, look for designated operating entities with audit certification.

Project registration

The contracted designated operating entity confirms that the project meets the requirements of the CDM, signs an audit certification report, and submits an application for registration to the United Nations CDM Executive Board. The validation report needs to include a project design document (PDD), a written approval document from the host country, and the handling of public comments.

Within 8 weeks from the date when the CDM Executive Board receives the request for registration, if there is no request for reexamination by 3 or more directors of the CDM Executive Board and participating parties, the project will automatically pass the registration. The Executive Board mainly reviews whether the project meets the qualification requirements of Phase 4. The final decision is made by the CDM Executive Board before the second meeting after receiving the application for registration.

If the project is rejected by the CDM Executive Board, the enterprise can modify it and resubmit the application after modification.

Project implementation and monitoring

The monitoring activities are implemented by the project proponent and need to be performed in accordance with the testing plan in the project design document submitted for registration.

The monitoring results need to be reported to the designated operating entity responsible for verifying and verifying the emission reductions of the project. In general, the operating entities that carry out project verification and emission reduction verification cannot be the same, but small-scale CDM projects can apply for the same designated operating entity for verification, verification, and verification.

Verification and certification of emission reductions

Verification refers to the process of periodically reviewing and determining the emission reductions of registered CDM projects under the responsibility of a designated operating entity. Based on the verified monitoring data, calculation procedures and methods, the emission reductions of CDM projects can be calculated.

Certification refers to a written report issued by the designated operating entity, which proves that within a cycle, the project has achieved verified emission reductions. According to the verification report, the designated operating entity issues a written certification report and notifies the result. Stakeholders.

Issuance of CERs

The certification report submitted by the designated operating entity to the CDM Executive Board applies to the CDM Executive Board to issue CERS equal to the verified emission reductions.

Within 15 days from the date on which the CDM Executive Board receives the issuance request, if the contracting party or at least three members of the Executive Board have not submitted a review of the CERs application, the application for CERs may be considered to be automatically approved . If a Contracting Party or more than three CDM Executive Board members request a review, the CDM Executive Board needs to review the certification report.

When a review request is received, the CDM Executive Board will determine whether to conduct a review at the next meeting. If a review is decided, the content of the review will be limited to whether the designated operating entity has deceived, malfeasance and its qualifications. The review shall be completed within 30 days from the date of the review.

Greenhouse gas emissions reduced by the clean development mechanism

The greenhouse gases included in the CDM rules are: CO2 (carbon dioxide), CH4 (methane), N2O (nitrogen oxide), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons), SF6 (sulfur hexafluoride). One ton of CH4 is equivalent to 21 tons of CO2, one ton of N2O (nitrogen oxide) is equivalent to 310 tons of CO2, and one ton of HFCs (hydrofluorocarbons) is equivalent to 140-11,700 tons of CO2.

Clean Development Mechanism industries and sectors

1. Energy industry (renewable / non-renewable)

2. Energy distribution

3. Energy demand

4. manufacturing

5. Chemical Industry

6. achitechive

7. Transportation industry

8. Mineral products

9. Metal production

10. Fugitive emissions of fuels (solid fuels, oil and gas)

11. Fugitive emissions from the production and consumption of hydrocarbons and sulfur hexafluoride

12. Use of solvents

13. Waste disposal

14. Reforestation and reforestation

15. agriculture

CDM CDM China Road to Clean Development Mechanism

Since 2002, CDM projects have entered China. Data from Tsinghua University's clean development mechanism project research and a list of alternative projects from the National Development and Reform Commission's National Climate Change Policy Coordination Group show that from 2002 to 2005 alone, there will be about 7.734 billion yuan (about 931.9 million US dollars) in funding. It has been invested in the development of four CDM projects in China. These four projects are Xiaogushan Hydropower Station, which started in early 2003, Inner Mongolia Huitengxile Wind Farm Project, which started in 2004, and Jilin Taonan, which is expected to be operational in October 2005. 49.3MW wind farm project and Yunnan Daliangzi Hydropower Station, which is expected to start in December 2005. In the second half of 2002, the Dutch government and the Chinese government signed a contract for the first CDM project in China's Huitengxile wind farm project in Inner Mongolia. The contract stipulated that the price of CERs should be set at 5.4 Euros per ton of CO2. The displacement is about 54,000 tons, and the emission reduction period is 10 years. The Chinese companies investing in the project received a guarantee of a total of about RMB 270 million (27 million Euros). For the Xiaogushan Hydropower Station (XHP) project, the project investor is the World Bank's Pilot Carbon Fund (PCF). The project has a total CO2 emission reduction credit of 3723,000 tons and CERs of about $ 4 per ton of CO2. Therefore, the Chinese investment company Xiaogushan Hydropower Company of this project will receive nearly 15 million US dollars of investment. In addition, the "African and Youth Desertification Project in Aohan Banner in Northeast China" signed by the State Forestry Administration of China and the Italian Ministry of Environment, Land and Resources in accordance with the relevant provisions of the CDM afforestation and reforestation carbon sink project will be officially implemented. Within 5 years, the two sides invested USD 1.53 million to plant 3,000 hectares in the deserted sandy land of Aohan Banner, Mongolia, China. ^[2]

Basic domestic requirements for the clean development mechanism

According to the regulations, the clean development mechanism projects implemented in China must meet the following requirements:

1 The development of clean development mechanism projects should comply with China's laws and regulations and sustainable development strategies, policies, and the overall requirements of national economic and social development planning;

2 that funds used by developed country Parties for clean development mechanism projects shall be in addition to existing official development assistance funds and their financial obligations under the convention;

3 Clean development mechanism project activities should promote technology transfer that is environmentally friendly.

It should be noted that only Chinese-funded and Chinese-holding companies in China can carry out CDM project cooperation with other countries, and no other company can participate in the development of CDM projects as project owners. Our government has determined that the key areas of China's clean development mechanism projects are to improve energy efficiency, develop and use new and renewable energy sources, and recycle methane and coalbed methane. ^[2]