Indian industry has given a big thumbs up to the continuation of CDM (Clean Development Mechanism) and market-based mechanisms for climate change mitigation. As high as 96 % of respondents to an India Consultation and Survey conducted by industry lobby group FICCI believe that CDM has contributed to sustainable development. Amongst the investments made on energy efficiency and renewable energy projects, as many as 48% of respondents have made investments in energy efficiency projects followed by wind (28%) projects.
Consultation and Survey saw representation from diverse sectors including cement, chemicals, fertilizers, hydro, iron and steel, mining, oil and gas, pulp and paper, power, solar, sugar, transport and wind. Stakeholder participation included industry, consultants, civil society groups, academia and government.
The survey report titled ‘Impacts, Governance and Future of CDM – Indian Industry Perspective’, is based on Indian industry perspective arising out of a two stage feedback mechanism conducted by FICCI – (1) The India Consultation of the UNFCCC High Level CDM Policy Dialogue and (2) A survey carried out by FICCI amongst Indian project developers across diverse sectors. The report highlights the positive environmental, social and economic impacts of CDM as described by the project developers. It also brings out some interesting statistics on questions pertaining to sustainable development, CDM investments and governance issues.
The United Nations Framework Convention on Climate Change (UNFCCC) had constituted a High-level Panel on Clean Development Mechanism (CDM) in late 2011 to carry out consultations to take stock of the lessons learnt in CDM resulting in recommendations on how to best position CDM for a continued strong role in the post 2012 carbon markets. The India Consultation which was conducted by FICCI in New Delhi
was part of these series of consultations carried out by the High level Panel of CDM Policy Dialogue across different countries.
India continues to be an important player in CDM as it accounts for more than 800 registered CDM projects and along with China hosts more than 70% of CDM projects in the world. As of July 2012, more than 1600 companies in India are part of the CDM portfolio across more than 50 sectors including automobiles, cement, chemicals, construction, fertilisers, iron & steel, oil & gas, pharmaceuticals, power, pulp and paper, tyres, waste management and many others. A total of 2355 projects have been approved by the Government of India out of which around 850 have been registered by the CDM Executive Board of the UNFCCC.