Singapore, June 2. (UNI): The Asian Development Bank (ADB) on Wednesday announced a technical assistance grant of US$700,000 to help India to efficiently undertake clean development mechanism (CDM) projects to cut back on greenhouse gases (GHGs) emissions into the atmosphere.
The TA, financed by the Canadian Government and administered through ADB's Renewable Energy, Energy Efficiency and Climate Change Program, will support various stakeholders in specific CDM sectors and selected areas to strengthen India's overall position as one of the key players in the evolving international carbon market.
"India has the potential to play a major role in the global CDM market, as significant potential for GHG reduction at relatively low marginal abatement costs is available across various sectors that are growing rapidly," said Ashok Sarkar, an ADB energy specialist.
The Kyoto Protocol sets binding targets for industrialised countries for the reduction of GHG emissions that would lower the risk of global climate change.
CDM is a market-based financial instrument set up under the Kyoto Protocol that allows industrialised countries to invest in developing country projects and acquire GHG emission reduction credits, or carbon credits, that they can then use to meet their GHG emission reduction targets under the protocol.
A CDM facility was also set up in ADB in September 2003 to provide technical and administrative assistance to eligible projects in parallel with project identification and loan processing, and to help in transactions with potential buyers of carbon credits generated by such projects.
"The CDM is emerging as a key vehicle of multilateral cooperation to tackle the potential risks of global climate change," Mr Sarkar added.