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This paper looks at the various emission trading mechanisms under the Kyoto Protocol. The Emission Trading mechanisms are Clean Development Mechanism (CDM), Emission Trading System (ETS) and Joint Implementation (JI), which involve trading of carbon in terms of Certified Emission Reduction (CER), Assigned Amount Units (AAU) and Emission Reduction Unit (ERU), resp. The paper focuses on CDM which is a flexible project-based mechanism that facilitates Annex I (developed) countries to execute projects to mitigate GHG emissions in non-Annex I (developing) countries to earn CERs. 7677 CDM projects implemented to reduce GHGs from manufacturing industries (384), chemical industries (116), mining and production of metals (97) and energy sector (6576) till October 2015 have been studied and analyzed. All these CDM projects used different methodologies for GHG mitigation activity to calculate Certified Emission Reductions (CERs) generated by CDM project activity in a host country. A brief review of the methodologies used in all the projects to mitigate GHGs by its emission avoidance, capture, recovery and further for electricity generation has been carried out. We have also reviewed the various Joint Implementation Projects and the Emission Trading Volumes briefly. To conclude, it is effective to have CDM projects and JI projects in various industrial sectors as it leads to substantial GHG emission reduction.

Role of Emission Trading and Clean Development Mechanism in Achieving Cleaner Production