Implying rational ways anywhere in the planet with the aim of reducing green house emissions serves beneficial to the entire ecology. Based on this principle of challenging rampant increase in global warming on earth, the Clean Development Mechanism (CDM|) has been shaped under the Kyoto Protocol way back in 2007.
The idea is to provide a leeway to industrialized countries that has ratified the protocol with the pledge to curb reduction and attain demarcated targets by financing sequestration projects in other member countries. Higher the emission seizure levels, we see a rise in the certified emission reduction (CER) scores or Carbon Credits, granted to the financers. Thus, conferring the responsibility to maintain environmental equity under Joint Implementation (JI), caters to development in sync with sustainable solutions.
Considering its effectiveness even in the current scenario to bring effects of climate change and global warming under control, the Kyoto conference along with its agenda finds relevance even after a decade. Transfer of mitigation technologies, policy lessons, knowledge sharing or skills exchange between host countries and parties undertaking the responsibility happens to be an integral part of CDM. In a way the entire format promotes sharing responsibility for building a greener tomorrow.
Australia happens to be an integral part of the CDM curriculum, reserving the right to participate in eligible CDM projects as a host country specifically in China, Indonesia and Malaysia. The projects include financing reforestations, creation of renewable energy, reducing methane emissions and improving lighting efficiency by introducing unconventional solar power.
According to the international norms, Australia has both Designated National Authority (DNA) and Designated Focal Point (DFP), grouped into a single body under the Department of Environment as National Authority for CDM and JI. It is majorly responsible for authorizing companies and private entities to participate in CDM and JI.
Taking cue from CDM, Australia’s Clean Energy Act 2011 gave Australian companies the leverage to offset 12.5 % of emissions using CERs under linkages of carbon trading scheme and carbon prices between European Union and Australia since 2015. Therefore, to tame climate change and global warming, Australia has been bearing equitable share without losing perspective.
According to the domestic regulatory formats- rules, methodologies and compliance mechanisms has been shaped taking into cognizance economic instruments in climate control frameworks. This is being capitalized on by the shareholders of climate negotiations and emission trading, making the entire CDM process debatable.