clean development mechanism – A boon to CA profession

CDM is a huge business opportunity for CA profession in 2009 and in future. In India there is huge initiative by govt. of India to avail carbon credits. CA professional can gain good business and consulting opportunity by following ways:

1. Working in areas of deciding and implementing policy initiative in reducing GHG emissions and thus combating climate change impacts include:

a. Electricity Act. 2003, which promotes cogeneration and generation of electricity from renewable sources of energy. Promotes captive power.
b. Energy Conservation Act 2001.
c. Energy Conservation Building codes.
d. Renewable Energy Act, which is under. Preparation.
e. Ratification of Kyoto Protocol.
f. Involvement in Asia-Pacific Partnership on Clean Development.

2. CDM Procedures implementation consultancy.

Clean Development Mechanism (CDM) allows industrialized/developed countries to invest in emission reduction projects in developing countries that assist the developing countries in achieving sustainable development, and that generate Certified Emission Reductions (CER) for use by the investing countries or companies against their own emissions limitation targets.
As per the Kyoto Protocol, some of the sectors, investments in which may qualify for CDM credits, are:

a) Energy {including renewable energy projects (Wind, Biomass, Hyde), energy efficiency improvement projects}
b) Industrial Processes.
c) Solvent and other product use.
d) Agriculture (enteric fermentation, manure management, rice cultivation)
e) Waste (solid waste disposal on land, wastewater handing, waste incineration, other)
f) fLand use, land –use change and forestry (a forestation, reforestation

The following chart depicts the entire process of CDM cycle till the issuance and transaction of CERs.

I Project Implementation

a. Project identification.
b. Project Construction
c. Project Operation


carbon credit India