NSS (National Strategy Study) for CDM (Clean Development Mechanism) in India was initiated to assess the issues and opportunities presented by potential international markets for GHG (greenhouse gases) offset through the CDM, and to evaluate processes and methodologies to facilitate implementation of CDM in India. The study has been conducted by TERI, New Delhi, with Swiss consultants providing inputs as required.

Participation of India in CDM helps it by bringing in clean technologies and financial resources thereby complementing its sustainable development efforts. The extent to which India could participate in the CDM depends largely on the potential of the GHG emission reductions and their costs at the project, sectoral and national level and the international demand for GHGs offset.


Evolution of NSS

The National Strategy Study has been a part of the NSS Program (National JI/CDM [ Joint Implementation/Clean Development Mechanism] Strategy Studies Program) of the World Bank. The program was launched in 1997 between the Government of Switzerland and the World Bank. The objective of this programme was to build capacity of the JI/CDM host countries regarding the application of the Kyoto Protocol flexibility mechanisms that promote trade of GHGs emission reductions.

With Germany, Australia, Finland, Austria and Canada joining the major Swiss donor support, the NSS Program targeted nearly 30 of the Bank's client countries. As the NSS Program aimed at building local capacity, the studies have been carried out by host country experts, in collaboration with experts from donor countries and the World Bank.


Objectives of the Study

The objective of the study was to develop a national strategy for India to participate in the global efforts to reduce GHGs emissions through CDM.

This has been achieved through the following steps:

assessment of opportunities presented by the international demand for carbon
assessment of CDM potential in different sectors in India
evaluation of processes and institutional arrangements in India for CDM implementation
suggestion for a framework, including capacity building requirements to facilitate the development and implementation of CDM projects
development of a pipeline of CDM projects


Activities and Outcomes

The study brought out a strategic overview of CDM opportunities for India through an analysis of international demand for GHG offsets and India’s supply potential from different sectors.

The study examined the barriers to CDM implementation in India and identified key institutional, legal, financial and regulatory pre-requisites for CDM project development and implementation. Keeping in view the ongoing international and national developments, a framework to facilitate CDM project development and implementation has been designed.

The study not only identified human and institutional capacity building needs to develop, implement, and process CDM projects in India in order to tap global GHGs offset opportunities but also organized several capacity building and technical assistance workshops for different categories of stakeholders.

The study also developed a few PDDs (project design document), to highlight issues and concerns related to project development methodologies. The process of project identification and development had been a transparent and participatory one.

As the ultimate outcome of the study an Action Plan to facilitate the operationalization of CDM in India has been developed.