Understanding carbon market projects and their sustainability assessment through MATA-CDM tool
Student name: Ms Amulya Chevuturi
Guide: Dr V V N Kishore
Year of completion: 2009
Host Organisation: Emergent Ventures India Pvt. Ltd.
Supervisor (Host Organisation): Mr Atul Sanghal
Abstract: As climate change becomes one of the biggest problems faced by mankind, various
measures have been brought up to mitigate the said problem, such as the carbon
markets. Through cap and trade mechanism, these markets have made carbon a
tradeable commodity which allows emissions reductions or abatement measures at the
lowest cost possible. This study is in field of carbon markets. The study aims to
understand the various carbon markets (compliance or voluntary) and their processes.
The carbon market projects were studied by taking them through the carbon market
process. Two project activities considered; CDM project activity - Chirchind Small
Hydro Project and VCS project activity - Cauvery Small Hydro Project. The projects
were also assessed on the basis of sustainability using MATA-CDM tool developed by
Christoph Sutter (Swiss Federal Institute of Technology). The CDM project activity had
sustainability score of 0.470 and VCS project 0.508. The VCS project received a higher
sustainability score as the VCM demand is based on corporate social responsibility; but
still the difference of the scores was not high as the CDM project activities have quality
assurance check from the UNFCCC executive board. These contrasting problems of
higher transaction costs and quality assurance check can be addressed by various
standards and registries in voluntary market (such as Gold Standard), and the CDM
Programme of Activities.
Key words: Carbon Markets, Clean Development Mechanism, Voluntary Carbon
Standard, MATA-CDM, Programme of Activities
