Joint press release by Federal Environment Ministry and Federal Environment Agency (UBA)
Since December 2005 the German Emissions Trading Authority (DEHSt) at the Federal Environment Agency (UBA) has approved more than 100 climate protection projects in developing and newly industrialising countries, based on the Clean Development Mechanism (CDM) pursuant to the Kyoto Protocol. This makes the CDM one of the most important climate protection instruments, aside from emissions trading, for companies in Germany. So far, 1,186 projects have been registered worldwide. Germany comes in fourth place with 112 projects. Federal Environment Minister Sigmar Gabriel commented on the results of the start-up phase presented by the UBA. "The CDM has matured. Companies responded to the incentives to incorporate climate protection into their operations abroad more quickly than we expected. The demand generated by the EU emissions trading scheme has contributed to creating a global carbon market which actively includes developing countries in climate protection. I consider this particularly important regarding the negotiations on a follow-up agreement to the Kyoto Protocol."
The CDM, which is defined in the Kyoto Protocol, is a tool for providing economic incentives. Its aim is to mobilise additional funds for urgently needed investments in climate protection in developing countries. German companies can also profit from this: pursuant to the Kyoto Protocol, greenhouse gas emissions that are avoided abroad can be counted towards reduction commitments of the industrialised countries. In Germany, companies subject to emissions trading can import up to 22 per cent of their allowance allocations for the period from 2008-2012 from CDM projects. According to World Bank estimates, the CDM triggered additional investments of around 24 billion euro in developing countries in 2007 alone. Experts add that companies would not have made these investments without the CDM.
Dr. Thomas Holzmann, Vice-President of UBA commented: "Germany participates in numerous projects covering various sectors. The project list includes not only larger investments in renewable energies or the use of climate damaging gas from landfills and industry, but also smaller projects which make an important contribution to poverty alleviation and the conservation of natural resources." Projects range from wind turbines on the Galapagos Islands to run-of-river plants in the foothills of the Indian Himalaya region. "In the Indian state of Andhra Pradesh, for example, around 630,000 conventional light bulbs are replaced by energy saving light bulbs. This lowers the consumption of electricity generated in coal or gas-fired power plants which emit air pollutants such as nitric oxides and sulphur dioxide on top of the greenhouse gas carbon dioxide. Also, households have to pay less for electricity. The CDM even further improves the compatibility of climate protection and economic development", Mr Holzmann continued. In cooperation with the KfW, the Federal Environment Ministry supports projects which pursue this programmatic approach within the framework of the CDM initiative. The programmatic approach makes it possible for one central coordinating agency to manage many small projects. Households in developing countries, for example, can be equipped with solar cookers. In addition to positive effects on the climate and saving fuel wood, these projects help improve the air that people breath which all too often is still polluted with flue gas from common wood fires.
The CDM Initiative is a programme of the BMU which supports both German participation in the market mechanisms of the Kyoto Protocol and the development of new opportunities for climate protection on the carbon market. Whether emission credits from CDM can be counted towards European emissions trading in future is currently being discussed intensively by the European Parliament, the Council and the Commission within the framework of the negotiations on the EU's climate and energy package.
The CDM records kept by the DEHSt provide a representative overview of internationally approved climate protection projects, available at www.dehst.de/JI-CDM. Further information on the DEHSt's project approval procedure is available here: www.dehst.de/CDM .
Information about the Federal Environment Ministry's activities regarding the CDM/JI initiative can be found at www.jiko-bmu.de .