CDMDefined in Article 12 of the Kyoto Protocol, the CDM is intended to meet two objectives: (1) to assist parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the convention; and (2) to assist parties included in Annex I in achieving ... must work to promote low-carbon energyThe ability to perform work, mainly kinetic, potential, thermal energy, but also in forms of gravitational, sound, elastic and electromagnetic energy.

REEEPThe Renewable Energy & Energy Efficiency Partnership (REEEP) is a non-profit, specialist change agent aiming to catalyse the market for renewable energy and energy efficiency, with a primary focus on emerging markets and developing countries. position: classify all renewable energyRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. and energy efficiencyUsing less energy/electricity to perform the same function. Programs designed to use electricity more efficiently - doing the same with less. technology projects additional

There is little dispute that the Clean Development Mechanism (CDM) is in urgent need of reform. The entire concept of additionality, where a project must show that it yields an outcome that would not otherwise have happened, is flawed when applied to low carbon energy technologies such as renewablesRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. and energy efficiencyUsing less energy/electricity to perform the same function. Programs designed to use electricity more efficiently - doing the same with less..

The first shortfall is that other than for small-scale projects, additionality is currently limited to demonstrating  financial additionality.  This theoretical construct does not work at the current low price levels for Certified Emission Reductions (CERs).  The whole system was initially designed for a market where the expected demand and prices would be much higher.

Furthermore, the current approach for measuring additionality based on benchmarks is not suitable for either renewable energy or energy efficiency projects. For energy efficiency projects, the rates of return of generally very high even without CERs, but they are still not realised, and the current additionality tool does not work.

In the recent case relating to windWind occurs due to different temperature levels in the atmosphere (troposphere) which are heated up by the sun. A typical example are the trade winds at the equator where the sun is most powerful.. projects in China, the Executive Board (EB) of CDM seems to be micromanaging additionality for renewable energy very selectively and without consistency.  Industry observers agree. “We believe that this approach indicates the EB has not correctly understood the situation and the decision was not taken transparently” says Li Junfeng, President of the Chinese Renewable Energy Industry Association “and it sets and alarming precedent.”

Binu ParthanBinu Parthan, Deputy Director General of REEEP says “REEEP believes that the project-by-project determination of additionality in the current CDM procedures for clean energy technologies does not have the intended effect. REEEP calls on those responsible to categorise all renewable energy and energy efficiency technologies as additional, i.e. to pre-determine additionality at the technology level. Only if a host country reaches a sunset threshold of 10% or 20% of energy provided from a specific renewable energy technology such as wind (a similar threshold was defined for ultra-supercritical coal), should CoP/MoP be able to categorise future projects applying these technologies as no longer additional.”

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