Abstract

This paper looks at the various emission tradingmechanisms under the Kyoto Protocol. The Emission Tradingmechanisms are Clean Development Mechanism (CDM),Emission Trading System (ETS) and Joint Implementation (JI),which involve trading of carbon in terms of Certified EmissionReduction (CER), Assigned Amount Units (AAU) and EmissionReduction Unit (ERU), resp. The paper focuses on CDM whichis a flexible project-based mechanism that facilitates Annex I(developed) countries to execute projects to mitigate GHGemissions in non-Annex I (developing) countries to earn CERs.7677 CDM projects implemented to reduce GHGs frommanufacturing industries (384), chemical industries (116),mining and production of metals (97) and energy sector (6576)till October 2015 have been studied and analyzed. All theseCDM projects used different methodologies for GHGmitigation activity to calculate Certified Emission Reductions(CERs) generated by CDM project activity in a host country. Abrief review of the methodologies used in all the projects tomitigate GHGs by its emission avoidance, capture, recoveryand further for electricity generation has been carried out. Wehave also reviewed the various Joint Implementation Projectsand the Emission Trading Volumes briefly. To conclude, it iseffective to have CDM projects and JI projects in variousindustrial sectors as it leads to substantial GHG emissionreduction.