74 China CDM Projects Shang Our correspondent recently learned that China's 74 CDM projects are facing the UN clean Development mechanism (CDM) Executive Board (EB) "Special review." "The 74 CDM projects in China will now face a more complex vetting process than normal approval processes," a person familiar with the matter told the newspaper, the CDM projects from China would be treated differently and face stricter scrutiny. The rationale for these projects being specifically reviewed is "the suspicion of data reported by these projects". February 26, the National Federation of New Energy Chamber of Commerce Secretary General, Tsinghua University CDM Research and Development Center Executive Director Zeng Shaojun told our correspondent, "At present, China's CDM approval has been rejected the most frequent is wind power, hydropower projects, small hydro CDM projects as an example, many Chinese projects reported to the United Nations internal rate of return in It has become a challenge for more and more CDM projects in China as a result of the extension of the approval time for the United Nations EB Project to China, resulting in the lack of timely registration of some renewable projects in China. On the eve of the Copenhagen Conference, 10 Chinese wind power CDM projects that have entered a conditional state have been rejected by EB, and the reason for the refusal is to ask the owner to explain the project's price on the internet. The frequent refusal of approval since the entry into force of the Kyoto Protocol on February 16, 2005, China's CDM projects have been growing rapidly, with an average of 1~2 per day, which is one of the most developed and implemented CDM projects. According to the reporter understand, the general process of domestic CDM project transaction is, the enterprise in the international buyer's support, confirms the project development qualification, then obtains the national Development and Reform Commission to approve, then passes through the third Party operating entity attestation, then to the UN EB Registration, by the United Nations EB issues The amount of CERs to enter the buyer account. "Enterprises will receive a certain amount of money after the United Nations has been registered and issued a certification, and many projects would not have been able to do so without such financial support." The person told the news. According to data from the NDRC, as of January 19, 2010, the National Development and Reform Commission approved a total of 2,369 CDM projects. But there are only 701 Chinese CDM projects registered in the United Nations, and only 174 have been issued. "China is the fastest-moving CDM project in the world, and more and more projects are reported each year, which could cause unhappiness in other countries." Zeng Shaojun told reporters. At present, the process of CDM approval is more and more long, and the uncertainty of approval process increases. The risk of our government's approval and the risk of United Nations registration coexist, many enterprises are approved by their own governments, but the proportion of registered and issued at the United Nations is very low. At the 51st meeting of the Executive Board of the United Nations Clean Development Mechanism held last December, the CDM council hit a killer from a project in China, and a total of 10 wind power projects were rejected. including ShenhuaChina Energy Investment Co., Ltd. under the Guohua (Tongliao) Wind Power Co., Ltd. development projects, located in Inner Mongolia Kezuozhongqi generation Ligi Town wind farm, a scale of 495,000 kilowatts, covers an area of 16 square kilometers, a total of 33 1.5MW wind turbine installed, investment of about 500 million yuan, has been connected to power generation. At the same time CDM projects must fulfill the domestic and international two sets of procedures, through a number of institutions for approval. A project from the application to the approval of the United Nations EB registration generally takes 2-3 years, the most smooth also need 3-6 months time. "Methodology" in accordance with the general procedures for the application, the need to first pass the National Development and Reform Commission approved, and then to the United Nations declaration, the need for professional statements, and so on, due to the complex declaration procedures, usually owners will allow professional CDM advisory body to apply. "Due to the lack of understanding of CDM projects, some projects did not select consulting companies, the quality of project design documents seriously affected the approval of CDM projects, resulting in some projects missed the best reporting time." "Feng Xuepe in summarizing the company CDM project. In the project development phase, the main risk is that methodologies may be rejected, and a good CDM project must have methodologies to be approved. To ensure that CDM projects bring long-term, actual measurable, additional emission reductions, EB in the review process using the CDM project methodology, based on the project, the main statement of the decision to determine the amount of project approval procedures, including methodologies applicable standards, baselines, accounting methods, monitoring requirements. If enterprises do not understand the process and requirements, there will be no way, there are currently more than 120 CDM methodologies, of which 52 are submitted to the World Bank for approval (including the bank-sponsored). However, the methodology developed is a public product, and once a methodology is recognized, any other project developer can use it at will. Therefore, the motivation of pioneering methodology is lacking. From the experience of the World Bank, developing a methodology takes about 125,000 dollars, from start to approval for two years. The development of a certain breadth, and can be applied to a considerable extent, the incentive of the methodology is less, the impetus of innovation is increasingly weak. For example, improving energy efficiency and CBM utilization are priority areas for CDM projects in China, but there are few or no past methodologies that have a direct impact on China's project development in this area. Liu, deputy director of the Institute of Climate Research, Tsinghua University estimates that the average cost per project is about 800,000 yuan, and once it is not approved, it means financial risk. The market is about to dry up? As the Copenhagen Conference failed to reach a deal on emissions, the rich world's buying promises that by 2012 the EU will not be able to continue to pay for all developing countries, especially if the US does not sign CDM projects, and the CDM could be depleted and the global carbon market hit hard. Under the Kyoto Protocol, 2008-2012 years of primaryEmissions from industrialized countries should be cut by an average of 5.2% on 1996 basis. According to Xuedu, member of the Executive Board of the United Nations Clean Development Mechanism, the cost of these greenhouse-gas-emitting institutions, if they are to be reduced in their own countries, is likely to be quite high, and if it is reduced by this mechanism in the developing world, the cost can be substantially reduced, about 1/10 per cent of its domestic cost of reducing emissions. Under this mechanism, companies and government agencies in developed countries that are subject to carbon-dioxide reduction quotas can work with energy-saving projects in developing countries through technology transfer or capital investment to get the carbon dioxide emissions from the project to offset their own emissions limits. According to the World Bank, the global carbon deal is up to € 50 billion a year between 2008 and 2012. Currently, the EU is the largest driver of the CDM mechanism, but between 2012 and 2020, the EU will slash the amount of CDM used in the emissions trading system, so the United States and other countries are also joining the CDM emissions trading as the key. As the CDM builds on emissions-reduction deals, the Copenhagen Conference is fruitless and the developed countries ' buying promises will expire in the next few years, when the rich world buys a promise by 2012. A researcher at the Institute of Standardization, China, described to reporters the dilemma that future CDM projects will face, namely "no buyers, low prices". "The CDM project is so hot now because many people believe that there will be agreements like the Kyoto Protocol to ensure that it works." "The person said. Another destabilizing factor is that many representatives of developed countries often put forward in different meeting places: Using "Industry method" as the indicator of emission reduction and quantification within developed countries, to standardize and replace CDM. "CDM is by far the only successful and effective mechanism for both the developing and the developed countries, and the ' industry method ' can be used as an important quantitative way to reduce emissions in developed countries, but it is not intended to set global uniform emissions or technical standards, and it is imprudent to replace CDM with ' industry approach '." "Zeng Shaojun said.
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