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Introduction to Carbon Development Mechanism (CDM) By EARTHOOD

The Carbon Development Mechanism (CDM) allows businesses in industrialized countries to invest in emission reduction projects in developing nations, earning Certified Emission Reduction (CER) credits. EARTHOOD helps organizations navigate CDM processes, ensuring compliance with international standards while promoting sustainable, low-carbon solutions. We assist in the development and implementation of carbon reduction projects, enabling businesses to reduce their carbon footprint and gain financial incentives through CER trading.

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Introduction to Carbon Development Mechanism (CDM) By EARTHOOD

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  1. INTRODUCTION TO CARBON DEVELOPMENT MECHANISM (CDM) BY EARTHOOD

  2. What is CDM? • A framework established under the Kyoto Protocol (1997) to reduce greenhouse gas emissions. • Allows developed countries (Annex I) to invest in emission reduction projects in developing countries.

  3. How CDM Works • Step-by-Step Process: • Project Design: Identify and develop an emission reduction project (e.g., renewable energy, afforestation). • Validation: Independent Designated Operational Entities (DOEs) validate the project. • Registration: Approval by the CDM Executive Board. • Monitoring and Verification: Emission reductions are monitored and verified by DOEs. • CER Issuance: CERs are issued and can be traded in carbon markets.

  4. Benefits of CDM For Developing Countries: Access to funding for sustainable projects. Technology transfer and infrastructure development. Creation of local jobs and improved living standards. For Developed Countries: Cost-effective way to meet emission targets. Supports corporate social responsibility goals. Global Benefits: Reduction of greenhouse gas emissions. Advancement of climate change mitigation efforts. Encouragement of global collaboration.

  5. Challenges and Criticisms Implementation Challenges: Complex registration and approval processes. High transaction and operational costs. Criticisms: Uneven distribution of projects, favoring larger economies. Questions over the additionality principle (whether emission reductions are truly additional to business-as-usual scenarios). Oversupply of CERs leading to low market prices.

  6. The Future of CDM Transition to the Paris Agreement Framework: CDM projects are evolving into Article 6 mechanisms under the Paris Agreement. Focus on more inclusive and sustainable global carbon markets. Opportunities for Businesses and Governments: Integrate CDM projects with corporate sustainability initiatives. Leverage carbon credits for achieving Net Zero goals. Conclusion: CDM remains a pivotal tool for global climate action. Continued innovation and reforms are essential for maximizing its impact.

  7. THANK YOU!

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