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In order to qualify for the CDM, activities have to ensure that the emission
reductions are strictly
additional
and that they contribute to sustainable
development in the host country. Emission reductions created through
CDM projects are considered to be of very high quality due to the strict
requirements to be approved under the CDM and which is ensured by
quality control and independent third party evaluation. However, since the
cost to certify and meet all the criteria are considerable, the price for an
offset unit created under the CDM is often more expensive than outside
the compliance market.
All project types are in general eligible to be certified as CDM (under the
precondition that they are located in Non-Annex I countries) and lead to re-
”Additionality” means the projects must achieve cuts in emissions that would not
have happened otherwise. If a scheme to cut air pollution also brings about a
reduction in GHG emissions, for example, then the cut would have occurred any-
way, as a by-product, and there is no additionality. To try to avoid giving credits to
projects like this (“free riders”), there are some rules which try to ensure the project
does in fact reduce emissions more than would have happened in any case.
Certified Emission Reductions
Source: United Nations Framework Convention on Climate Change, April 2008.
China
India
Mexico
Brazil
Chile
Egypt
South Korea
Vietnam
Circles have only been drawn for countries
that have issued more than 50,000 CERs.
One certified emission reduction unit is equivalent
to a one-tonne reduction in greenhouse gas emissions
(measured in CO
2
equivalent).
Host parties
Million CERs
40
Certified Emission Reduction units
issued by host parties
20
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