The Clean Development Mechanism (CDM) and India: firm responses, baselines, and development dynamics

Abstract

This paper provides an assessment of the Clean Development Mechanism (CDM) from a developing country’s perspective with specific reference to activities in India. The CDM has elicited considerable interest from various Indian industries. We analyze here the nature of initial CDM projects in India, sector preferences, scales, and possible contributions to India’s development priorities. The issues of technology transfer, transaction costs, baselines, and additionality are discussed with reference to the Indian context. The scope and limitations of the CDM are critically reviewed. Observations and recommendations are made for mainstreaming the climate actions with development dynamics in developing countries in the post-Kyoto architecture.