Two leading carbon offset project developers in India say the scheme offers the promise of improving livelihoods and greatly expanding the reach and potential investment returns of the U.N.’s existing Clean Development Mechanism.
The CDM allows investors to build clean-energy projects, such as wind farms and solar power stations, in developing countries and earn carbon offsets in return. These can be sold on to help buyers in rich nations meet mandatory emissions targets.
But the CDM is hampered because it is based on the approval of single projects, which can take up to two years and is costly.
The expanded scheme, called programme of activities (PoA), aims to allow the launch of identical emissions-reduction projects across a much wider user base in a single programme, so cutting overall costs and simplifying the roll-out. More