Clean development Mechanism (CDM) Policy and Implementation in China

China is the second largest emitter of greenhouse gases (GHG) in the world. Since 68% of its primary energy is from coal, China’s average energy intensity is 7.5 times higher than the EU and 4.3 times higher than the US (EU, 2003). Therefore, introducing advanced clean technologies and management to China represents opportunities for Annex I countries to obtain low-cost CERs through CDM projects, and access to one of the largest energy conservation markets in the world.The Chinese government considers that the introduction of CDM projects can bring advanced energy technologies and foreign investment to China, thereby helping China’s sustainable development. As energy efficiency is generally low and carbon intensity is high in both China’s energy supply and demand sectors, numerous options exist for cost-effective energy conservation and GHG mitigation with CDM.This study has focused on the following areas: Clean development Mechanism (CDM) Policy and Implementation in ChinaClean development Mechanism (CDM) Policy and Implementation in ChinaChina’s energy development strategy and climate change, how to make CDM work for sustainable development in China? CDM projects in China: policies assessment and recommendations for improvement. Energy efficiency CDM projects and renewable CDM projects in China: case studiesFirstly, this thesis reviewed the current CDM developments in China, attentions were given to the renewable energy, energy efficiency and methane capture project opportunities in China.Secondly, this study introduced China’s current policy on CDM implementation, and reviewed its permission requirements, institutional arrangements and project procedures. Based on the observations, this study analyzed the current problems and pointed out the shortfalls of the existing Chinese CDM policies and institutional settings. Options to remove these barriers were given as recommendations. This thesis also looked at the problem of that CDM was designed to have double dividends, to reduce the compliance cost of the Annex I countries and to contribute to sustainable development in Non Annex I Parties, but in reality, CDM has caused concerns about whether it could really support sustainable development in host countries. This study analyzed the reasons underpin this problem.Thirdly, based on the analysis made on energy efficiency and renewable CDM project development in China, case study was given on China’s landfill gas to energy project. This study analyzed the perspective of GHG mitigation through landfill gas capture and utilization in China, its opportunities and challenges. Moreover, this study demonstrated how CDM can add value to landfill gas-to-energy projects in China.