This spring, the Kyoto Protocol’s Clean Development Mechanism (CDM) registered its 1,000th project, an energy efficiency project in India. The project was validated by DNV, just like 50% of the other registered CDM projects so far.
The Indian project is expected to reduce CO2 emissions by more than 34,000 tonnes annually. The flexible mechanisms introduced by the Kyoto Protocol, in particular the CDM and Joint Implementation (JI), are powerful tools for achieving global emission reductions. These mechanisms have succeeded in enticing the business community to invest in greenhouse gas mitigating projects in the developing countries as well as in Eastern Europe and Russia. DNV has supported these mechanisms since their introduction, and has contributed to them delivering real, measurable and additional emission reductions in a cost-efficient and reliable manner.
DNV was in 2004 one of the first companies to be accredited by the United Nations Framework Convention on Climate Change (UNFCCC) CDM Executive Board to validate emission reductions from projects in the developing world. This accreditation consolidated DNV’s strong position at that time in the international climate change arena.
CDM projects have so far generated more than 135 million certified emission reductions (tonne CO2 equivalents). The mechanism is currently anticipated to generate more than 2.7 billion certified emission reductions in the Kyoto Protocol’s first commitment period, 2008-2012.
Close to 50% of the registered CDM projects have so far been validated by DNV. Our involvement with climate change projects is increasing from month to month. Today, we have more than 200 trained climate change auditors worldwide, providing technical expertise and a local presence.
Our current strong position in the field of CDM andJI validation and verification gives us a fantastic starting point for future growth. Now, it’s time to take our involvement one step further. To demonstrate an even stronger commitment to the role we wish to play in the climate change arena, I have established a separate organisational climate change unit reporting directly to me. I want to give this service area the best opportunity to focus, grow and be innovative so that it can make a strong global impact in this rapidly expanding area.
Another aspect is that after 1,000 projects, useful experience of the market mechanisms established under the Kyoto Protocol has been gained. Taking into account that they were established more than ten years ago, it should come as no surprise that improvement areas are now beginning to show.
Our experience has given us valuable insight. We have been able to objectively observe what works and what does not work. We intend to use our experience to contribute to the development of the mechanisms, including beyond 2012 when the first Kyoto period runs out. It is vital that the mechanisms deliver the emission reductions that are necessary to combat climate change, while having the environmental and social integrity that is needed to gain acceptance by all stakeholders.
Henrik O. Madsen
President and Chief Executive Officer
Date: 2008-06-11