Project Background

Establishing the Institutional Capacity to Enable Small Scale Clean Development Mechanism (CDM) Projects in India

IT Power, ECN Netherlands, and IT Power India are being funded under the European Union Commission's 'Synergy' Programme to work on establishing the institutional capacity for bundling small-scale Clean Development Mechanism (CDM) projects in India. The project, which started in May 2003, focuses on developing local capacity to bundle small-scale renewable energy and energy efficiency projects, which are threatened with exclusion from the CDM due to high transaction costs entailed in the CDM project cycle.

The project is designed to be widely replicable and the output from the project will be disseminated to other developing countries, particularly in the African and Asian regions, and will result in an:

• Institutional assessment focusing on the capacity to bundle small CDM projects in India

• Identification of the market potential for small scale CDM projects in India

• Recommendations to the stakeholders and government authorities in India on how to enable small scale CDM projects

• Support with establishing the institutional capacity to enable small scale projects in India

• Dissemination of knowledge on establishing institutional capacity to support the bundling of small scale projects