Clean Development Mechanism (CDM) and Greenhouse Gas (GHG) in Indonesia

The Clean Development Mechanism is one of the three so-called flexible mechanisms of the Kyoto Protocol. These mechanisms are designed to make it easier and cheaper for industrialised countries to meet the greenhouse gas (GHG) emission reduction targets that they agreed to under the Protocol. The CDM is also mandated to "assist developing countries in achieving sustainable development". What constitutes sustainable development is decided by the host party.

Under the CDM, an industrialised country with a GHG reduction target (an Annex B country) can invest in a project in a developing country without a target (non-Annex B), and claim credit for the emissions that the project achieves. For example, an industrialised country may invest in a wind power project in a developing country that replaces electricity that would otherwise have been produced from coal. The industrialised country can then claim credit for the emissions that have been avoided, and use these credits to meet its own target. For industrialised countries, this greatly reduces the cost of meeting the reduction commitments that they agreed to under the Kyoto Protocol.

Indonesia has a high potential for CDM projects in the fields of biomass (waste to energy), bio diesel, energy efficiency and transportation/infrastructure as well as on renewable energies. One of the most sustainable fields and very important for GHG are aforestation projects.

CDM projects in Indonesia include:

• Micro-hydro project - Renewables
• Utilization of plantation waste and forest sequestration project - Fuel Switching
• East Kalimantan plantation project - Sinks and sequestration
• Sarulla geothermal project - Renewables
• Yogyakarta urban bus project - Transport
• Kansai wood waste recycling project - Sinks and Sequestration
• Palm oil waste power plant - Renewables
• Renewable agro-processing project - Fuel Switching, Renewables
• Indocement project - Energy Efficiency, Fuel Switching
• Darajat III geothermal project - Renewables
• Biodiesel project - Renewables
  

Bali International Consulting Group works on Indonesian CDM project proposals, feasibility studies, and attracting social responsible investment towards identified and assessed CDM projects in Indonesia. Further our CDM and GHG expert provides research studies and pre-feasibility services for CDM, GHG and renewable energy.