The Clean Development Mechanism (CDM) under the Kyoto Protocol to the UN Framework Convention on Climate Change (UNFCCC) enables industrialized countries to meet a part of their emission reduction requirements through purchase of emission reduction credits from projects in developing countries. Various studies have concluded that India is likely to be one of the major countries supplying such projects. However, in order that a large number of high-quality CDM projects is developed and result in Certified Emission Reductions as specified by the international CDM Executive Board, the institutional set up in the Indian finance sector has to be suitably geared up. So far, banks and financial institutions have not developed procedures for efficient financing of CDM projects. A necessary condition for an in-depth involvement of the financial sector is the development of transparent and effective approval rules by regulators both on the central and state level as well as improved project development capacity of the private sector.
Findings: Based on the primary analysis of the questionnaire circulated to the respondents and the secondary analysis of about 20 projects, the detail findings like abnormal delay for CDM projects, understanding level of CDM projects, risk involved and other finding are summarized in this paper.
Research implications: The study mainly focused on CDM projects in relation with the financial structures. The Clean Development Mechanism (CDM) under the Kyoto Protocol to the UN framework Convention on Climate Change (UNFCCC) enables industrialized countries to meet a part of their emission reduction requirements through purchase of emission reduction credits from projects in developing countries. Various studies have concluded that India is likely to be one of the major countries supplying such projects. However, in order that a large number of high-quality CDM projects is developed financial structures has been analyzed in this research paper.
Originality: This paper, by combining information, concepts into one model, offers new insights into the new ways to make impeccable finandal structures and reduce the problems related to the finance structures.
Findings: Based on the primary analysis of the questionnaire circulated to the respondents and the secondary analysis of about 20 projects, the detail findings like abnormal delay for CDM projects, understanding level of CDM projects, risk involved and other finding are summarized in this paper.
Research implications: The study mainly focused on CDM projects in relation with the financial structures. The Clean Development Mechanism (CDM) under the Kyoto Protocol to the UN framework Convention on Climate Change (UNFCCC) enables industrialized countries to meet a part of their emission reduction requirements through purchase of emission reduction credits from projects in developing countries. Various studies have concluded that India is likely to be one of the major countries supplying such projects. However, in order that a large number of high-quality CDM projects is developed financial structures has been analyzed in this research paper.
Originality: This paper, by combining information, concepts into one model, offers new insights into the new ways to make impeccable finandal structures and reduce the problems related to the finance structures.
Keywords
Clean Development Mechanism, Financial System.
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