In Rio de Janeiro in 1992, the United Nations Conference on Environment and Development (UNCED) developed the United Nations Framework Convention on Climate Change (UNFCCC).

It entered into force in March 1994 and has been ratified by more than 200 countries.

The stated objective of the Framework Convention was to stabilise greenhouse gas (GHG) concentrations in the atmosphere at levels that would prevent dangerous human interference with the climate system.

To achieve this objective, all countries accept a general commitment to address climate change, adapt to its effects, and report their actions to implement the Convention.

The Convention divides countries into two groups: Annex I Parties, the industrialised countries who have historically contributed the most to climate change, and non-Annex I Parties, which include primarily the developing countries.The principles of equity and 'common but differentiated responsibilities' contained in the Convention require Annex I Parties to take the lead in reducing their greenhouse gas emissions. The Parties to the Convention meet once a year at the Conference of Parties (COP) to discuss and negotiate measures against global climate change.

To further the goals of the UNFCCC,the Kyoto Protocol was adopted at the third Conference of Parties (COP-3) held in Kyoto, Japan, in 1997. At this historic meeting, the Parties to the Convention negotiated a set of legally binding quantitative targets for 38 industrialised countries (including 11 emerging market economies).

These targets, usually measured as a percentage change on 1990 levels, are to be achieved on average over the first five-year 'commitment period' of 2008-2012. The national emission targets range from:

• 1) -8% (e.g. for the 15 Member States of the European Union at that time) to
• 2) +10% (Iceland)

The total reduction adding up to around -5%. However, the Protocol did not become legally binding until 16 February 2005, after ratification by Russia surpassed the collective threshold level required for entry into force. All countries that have now both ratified the Kyoto Protocol and are listed in Annex B to the Protocol are therefore legally bound to limit their national emissions to the specified target levels, on average over the period 2008-2012. With ratification of the Protocol, the COP, meeting as the Meeting of the Parties (COP/MOP) to the Protocol, is now the supreme decision-making body for its implementation. The Kyoto Protocol recognises six main greenhouse gases, each with different impact on the global climate. The common 'currency' of the Kyoto Protocol targets is one metric tonne of carbon dioxide equivalent .

Each of the other greenhouse gases can be expressed in this form (on a weight-for-weight basis) by multiplying by its Global Warming Potential (GWP), as shown below.

• Carbon dioxide - 1
• Methane - 21
• Nitrous oxide - 310
• Hydro-fluorocarbons - 150 to 11,700
• Perfluorocarbons - 6,500 to 9,200
• Sulphur hexafluoride - 23,900

Based on the principle that the effect on the global environment is the same regardless of where GHG emissions reductions are achieved, countries may meet their targets through a combination of domestic activities and use of the Kyoto Protocol 'Flexibility Mechanisms,' which are designed to allow Annex I countries to meet their targets in a cost-effective manner and to assist developing countries in particular to achieve sustainable development.

There are three Kyoto Protocol Flexibility Mechanisms:

• Joint Implementation - JI (Article 6);
• Clean Development Mechanism - CDM (Article 12); and
• International Emissions Trading - IET (Article 17).

Both JI and CDM are 'project-based' mechanisms which involve developing and implementing projects that reduce GHG emissions, thereby generating carbon credits that can be sold on the carbon market. JI is a mechanism that allows the generation of credits (known as Emission Reduction Units or ERUs) from projects within Annex I countries CDM allows the generation of credits known as Certified Emission Reductions (CERs) from projects within non-Annex I countries (i.e. developing countries). International Emissions Trading allows trading directly between Annex I Parties in the units in which each country's target is denominated, known as Assigned Amount Units (AAUs). All of these different units (ERUs, CERs and AAUs) are effectively permits allowing an Annex I Party to emit one tonne of carbon dioxide equivalent . While these are the most common forms of carbon credits, it should be noted for completeness that Annex I countries may also issue Removal Units (RMUs) on the basis of land-use, land-use change and forestry (LULUCF) activities that remove greenhouse gases from the atmosphere, and that either temporary or long-term CERs (tCERs or lCERs) can be issued from LULUCF project activities under-taken in non-Annex I countries via the CDM.

The Clean Development Mechanism (CDM) is a mechanism whereby an Annex I party may purchase emission reductions which arise from projects located in non-Annex I countries. The carbon credits that are generated by a CDM project are termed Certified Emission Reductions (CERs), expressed in tonnes of CO2 equivalent (tCO2-e). In order for a project to generate CERs, it must undergo a rigorous process of documentation and approval by a variety of local and international stakeholders, as specified under the CDM Modalities and Procedures.

Key Stages in CDM Project

The key stages in the CDM project cycle are :

• the initial feasibility assessment
• development of a Project Design Document (PDD)
• host country approval
• project validation
• registration
• emission reduction verification
• credit issuance

Stakeholders

• the CDM project developer
• the CDM Executive Board (EB)
• the Designated Operational Entity (DOE), responsible for validation and verification of the project
• the Designated National Authority (DNA), which has the authority to grant host country approval for the project.

CDM Stages

The key stages in a CDM project are as follows:

• Project feasibility assessment
• CDM project development (PDD)
• Host Country Approval
• Project validation
• Project registration
• Project verification
• CER issuance

• Energy Efficiency in Buildings
  The project involves the early replacement of energy-inefficient, large-size chillers. Early replacement of such chillers, which could easily otherwise remain in operation for 30 years or more, would secure energy savings, and therefore reductions in CO2 emissions. Industries applicable include: -Airports where air-conditioning is turned on 24x7 -hotels and service apartments -shopping malls -datacentres
• Wind farms
  These projects usually comprises installation of Wind Electric Generators (WEGs). The advantages environmentally are: · Replaces electricity from electrical grid with clean energy · Reduction in the CO2 emissions · Reduction in the consumption of fossil fuels and conservation of fossil fuels · Reduction in local air pollutants and particulate matters, solid waste and discharges
• Hydro-electricity
  So far most electricity are generated by fossil fuel power plants mainly using coal or diesel fuels. The construction and operation of a hydro power plant will displace the use of fossil fuel plants reducing CO2 , COx, NOx.
• Bio-Mass and Bio-gas
  These projects involves the use of biogas generated from organic matter to produce fules. Organic Matter Digestion Gases naturally produced from the digestion of organic matter such as palm oil , pineapple waste, etc. can be channeled to produce electricity. The captured biogas can be used to produce renewable electricity for sale to the national grid as well as use on-site and reduce greenhouse gas emissions. Animal Waste Normally Animal Waste Management System (AWMS) at farms included treatment of manure via a separator, which separates solid and liquid manure. The solid manure is put on piles, until it can be used on the fields. The liquid manure is treated via a series of open lagoons (sometimes referred to as ponds). Such lagoon-based treatment is usually standard practice. This waste material is left to decay in the individual facility's open lagoon system, producing significant amounts of biogas, methane that is emitted directly to the atmosphere. This biogas emission contributes to significant air (odor) and water pollution in the areas close to the farm. Biogas projects enhance the farm's waste treatment, to capture the biogas (methane) and to use the potential of the biogas for electricity and heat production through the installation of a digester and two Combined Heat and Power (CHP) plants where the methane is burned and used to produce electricity and heat. The manure is treated in a nitrification unit and aerobic lagoons.
• Alternative energy source-fuel switch
  Manufacturing process where energy demand and need for steam is high is a good opportunity for fuel switch. In these industries burning fuel oil is needed to produce steam. These projects involves switching the fuel consumed to produce steam in the by a neutral carbon fuel. Usually this requires installing boilers with ablility to consume renewable biomass, a fuel with zero carbon emission factor. With the modification resulting from the implementation of the Project activity, the company 's plant will be able to supply all of its demand for steam with renewable energy sources. A significant environmental benefit of the project is that the air quality of the surrounding areas will be significantly increased, reducing the amount of pollutants dumped in the atmosphere by the burning of the fuel oil and reduces GHG emissions by displacing fuel oil plants that would have otherwise continued to operate. Industries applicable include: -Pulp and Paper industry -Food manufacturers -power plants This involves a switch from coal-fired or diesel-powered power plants to those fueled by natural gas. The benefit is a new source of cleaner electricity with lower greenhouse gas emissions.

Our Services include:

• Project identification and screening
• Feasibility study
• Business plan development
• Assistance with preparation of Project Idea Note (PIN)
• Project risk analysis and management
• Financial fund sourcing
• Baseline development
• Assisting registration and issuance process
• Assistance with preparation of Project Design Document (PDD)

We have current expertise methodologies in Energy Efficiency in Buildings, Wind Farms and Fuels switch to alternative energy sources for manufacturing plants and power plants.

Contact Us on your CDM needs

Contact Us today for a non-obligatory discussion on our CDM Services:

MFE International Pte Ltd

#44-00, Level Suntec City Tower 3

8 Temasek Boulevard

Singapore 038988

Tel :68663603