Climate change and CDM projects in India

Abstract

This study seeks to investigate the impacts of Clean Development Mechanism (CDM) projects in India. The paper is developed within the larger context of climate change. It tries to find out how CDM can be used as an instrument for development without the accompanying negative externalities leading to climate change. It explores whether these projects have achieved the purpose for which they were set up, their degree of success or failure and whether these efforts can be scaled up successfully. Ten out of 289 ongoing projects in India were selected for the analysis. Most of the projects are in the small scale sector and due to their unbundled nature involve a higher transaction cost. Moreover, the Government lacks awareness about the intricacies of CDM projects. Only a few of the ministries have developed some expertise in this area. The main focus of India is still on economic development and poverty alleviation and not on cleaner technology or sustainable development. The study also shows that substantial technology transfer is not taking place in India.