CURRENT CONDITION OF CDM AND ISSUES TO PROMOTE ENERGY SAVING CDM PROJECTS

This study analyzes the institutional problems and issues concerning energy saving CDM projects. It also focuses on the approval condition of methodologies by the CDM Executive Board and the applicability of the methodologies to the real projects. 90% of the expected amount of CER during the first commitment period will be obtained from non-CO2 related projects including HFC23, N2O and CH4. For the energy saving CDM projects, both of the number of projects and the amount of CER are very limited, in spite of a certain number of approved methodologies. A possibility is suggested that the emphasis on the additionality invites the high approvability to non-CO2 projects, which are easier to indicate their additionality compared to the energy efficiency projects. Energy saving CDM projects have many kinds of incentives except for the CER including energy cost reduction and air pollution control. The incentive to get CER itself from emission reduction of CO2 is lower compared to other GHGs with higher global warming potentials. It is importanto overcome obstacles and promote the realization of energy efficiency CDM projects.