Clean Development Mechanism (CDM)

• The Clean Development Mechanism (CDM), defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets.


• The mechanism is seen by many as a trailblazer. It is the first global, environmental investment and credit scheme of its kind, providing a standardized emissions offset instrument, CERs.


• PGPL, Grid connected natural gas based power project in Raigad District, Maharashtra, India has become one of the largest natural gas based power plant registered as CDM project under UNFCCC.


• The estimated amount of annual average GHG emission reductions shall be approximately 1,328,673 tCO2e and 13,286,730 tCO2 over the chosen crediting period of ten years, majority of which will be producing in post 2020 era.


• PGPL wish to register our project under Verified Carbon Standard also, so that Carbon Credits can be monetised for around 20 years for this clean power project.