Post 2012 climate regime: reformed CDM and the transition to a new market mechanism (an Indian perspective)
Student name: Ms Smita Rana
Guide: Dr Kamna Sachdeva
Year of completion: 2012
Host Organisation: FICCI Quality Forum, New Delhi
Supervisor (Host Organisation): Ms Archana Datta
Abstract: 2012 is a year when the Kyoto Protocol would come to an end of its first commitment period. And this
fact linked with the uncertainty associated with the post 2012 scenario, resulted in utter pessimism
among the market players till a period prior to the COP17 held at Durban. The Durban Climate
Conference, 2011 acted as the panacea for many as it infused life again in the Kyoto Protocol as well
as CDM. Disappointingly, this decision did not come alone. There were certain announcements from
the prominent CER buyers which dampened the morale of the market players, especially those who
are based in the developing countries like India and China.
On the other hand, since the Cancun Climate Conference, CDM has been witnessing several reforms
which would change its face in the 2nd commitment period. These changes were further aggravated by
the CDM related outcomes at the COP17 in Durban.
In view of such transformations, that the world of carbon market is undergoing, this study tries to gain
an understanding of the viewpoints of the CDM experts. The study tries to delve into the issues of
CDM reforms called upon post the Cancun Conference and their impacts on the functionality of CDM.
This study also tries to understand the potential impact of the Durban Conference on the CDM market
in India post 2012. Furthermore, the study also highlights the expectations of the experts from the New
Market Mechanism defined at the COP17at Durban in December, 2011.
As per the survey analysis, it was made clear that the CDM market in India post 2012 would not be in
a healthy state. In terms of the CDM reforms, experts applauded the potential of standardized
baselines in bringing the much demanded improvements in the CDM procedures. Also, there was open
support to adoption of positive lists, standardized criteria for assessing sustainable development by
the DNAs as well as an appeals procedure.
Furthermore, the survey brought forth that either NAMA crediting or sectoral crediting should be the
future market based mechanism as per the perspective of the market.
Keywords: Post 2012, CDM Reforms, New Market Mechanism, sectoral approach, NAMA crediting,
sectoral crediting, Durban Climate Conference
