A recent report by the UN Framework Convention on Climate Change has estimated that a total of $215.4 billion of investments will have been made through the clean development mechanism (CDM) by the end of 2012.
The CDM was created as part of the Kyoto Protocol to encourage investment in projects which reduce greenhouse gas emissions.
Projects that are a part of the CDM allow the countries to earn certified emission reductions (CER) for every tonne of carbon dioxide that they save from being released into the atmosphere. The CERs can then be traded, sold, or used by the countries in order to meet their emission targets.
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The report identified Germany, the US, Denmark, Japan, and China, as the top five suppliers for CDM projects.
In fact China has just registered another CDM project. The China Recycling Energy Corp, has supplied waste-to-energy technology that will capture and recycle heat, steam, pressure, and exhausts, from industrial operations at a smelting furnace in Inner Mongolia. The project will reduce carbon emissions by about 224,173 metric tonnes a year.
At present there are around 5,064 CDM registered projects across 81 developing countries, which have earned more than one billion CERs.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com