General knowledge about JI/CDM
The purpose of the Danish JI/CDM projects is to reduce CO2 in the host country, thereby generating carbon credits which can be used as a supplement to Denmark’s domestic CO2 reductions. The projects also contribute to sustainable development and growth.
To ensure that the Danish JI and CDM projects are sustainable and lead to real emission reductions, the UN has outlined a set of rules that Denmark follows. This means that all emission reductions are:
• Additional, which means that JI and CDM projects lead to additional emission reductions that would not have happened without the use of the JI/CDM mechanisms.
• Real, this means that all emission reductions and subsequent credits come from a specific JI or CDM project that the Danish Energy Agency is in contact with.
• Measureable, which means that all emission reductions are measured, documented and verified before they can be converted into CO2 credits.
Furthermore, Danish Energy Agency has a strong focus on sustainability and the projects often have a number of other positive social and environmental impacts e.g. reducing local air pollution, creating jobs and increasing the stability in power and heat supply.
The process of validation for JI and CDM is very comprehensive. The projects are validated down to the last detail and every single reduction is to be measured, documented and verified. The extensive UN system for validation of JI/CDM projects and verification of the reductions is based on thorough analysis, repeated project visits and written documentation that is crosschecked. A substantial parameter in the validation and verification process is ensuring that the projects contribute with something in addition to the ordinary and that all reductions actually have happened.
Denmark has set aside 1.6 billion Danish kroner for the development of JI and CDM credits from Eastern Europe and developing countries. The funds are used directly for investments in projects in Eastern Europe, Asia and Africa. In addition hereto, investments are made in international carbon funds administered by the World Bank and the Nordic Environment Finance Cooperation NEFCO.
The aim of the Danish JI and CDM programme is to reduce carbon emissions with 18.5 tonnes which will be included in the compliance of the Danish commitment to emission reductions under the Kyoto Protocol during the period 2008-12.