Terms of Reference
“CDM Road Map for India –
Looking back and Looking Ahead”
Background
India is a major player in the CDM market with over 800 projects. Indian CDM project types
cover a wide range both in terms of technologies and size. As the first commitment period of
the Kyoto Protocol comes to an end, the market for CDM project would change with the
emergence of a new regime. Consequently, there is a need for a reorientation that plays an
enabling role for the Indian CDM project developers and also strengthens India’s position in
the CDM market. The reorientation will however need to take into account the experiences
gained in the first commitment period and at the same time take into cognizance the
emerging realities in global climate governance.
Aim of the study
The aim of the study is to develop a CDM Road Map for India, which will recommend
suitable measures to increase the number of CDM projects in the country in the second
commitment period and to achieve maximum sustainable development benefits. The study
will assess the contribution of CDM projects implemented during the period 2000-2012 to the
development of the Indian economy and society. The results of the study will inform the
strategy of the Government of India to promote CDM projects in the second commitment
period of the Kyoto Protocol that support sustainable development in accordance with the
National Action Plan for Climate Change (NAPCC), National Strategy on Low-Carbon
Development and National Policy on Sustainable Development in the emerging global
Carbon/ CDM Market.
Key elements of the study
The proposed study will include the following elements:
1) In-depth analysis of future global Carbon/ CDM Market and opportunities for CDM
project development in India;
2) Analysis of the sustainable development benefits achieved so far by CDM projects
implemented in India
a) Degree of fulfillment of the sustainable development benefits specified in the project
documentation, including the use of the funds earmarked for the local population ;
b) Revenues generated for Indian entities involved in the CDM
3) Identification of barriers encountered during project implementation;
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4) Recommending suitable measures for
a) harnessing demand for Indian CERs post-2012; and
b) achieving sustainable development benefits for projects registered after 2012;
c) enhancing efficiency of project registration with CDM Executive Board;
d) linkages and synergies between CDM and NAMAs for sustainable development.
5) Developing a roadmap in accordance with the National Action Plan for Climate Change
(NAPCC) and the National Strategy for sustainable development.
Scope of Work
1. Analysis of the future global Carbon/ CDM Market development and opportunities
for CDM Project development in India
a) In-depth analysis of the existing Carbon/ CDM Market and emerging future trends and
barriers for CDM;
b) Projecting the future potential of Carbon/ CDM Market in India;
c) Role of NAMAs in the future Carbon Market and implications for India.
2. Selection of significant sample of registered CDM projects in India
A significant sample of registered CDM projects is to be selected where site visits are
undertaken. The sample will be stratified according to project types as per the attached excel
file. Projects not visited will be covered by an email survey. The consultant is expected to
develop an approach of the study for random choice of site visit locations, design of the
templates for the site visit interviews as well as the email survey that should cover all
elements of tasks 2 and 3 below, and a strategy for the follow-up of the email survey by
telephone to maximize the response rate. (please refer to Annexure 3).
3. Analysis of Sustainable Development (SD) benefits achieved so far by CDM
projects implemented in India
a) A methodology will be developed for analyzing the sustainable development benefits of
registered CDM projects in India on a project basis and for reporting it in a sector
wise/project types manner on an aggregate basis. The methodology should in general
include SD indicators in line with the National Policy for analyzing (i) Social well being (ii)
Economic well being (iii) Environmental well being and (iv) Technological well being
[refer box below] and be used for applying an evaluation according to five performance
levels. The methodology should show how qualitative information is allocated into one of
five performance categories. Particular emphasis is to be put on assessment of the
results of spending CER revenues for the benefit of the local population.
b) A methodology for eliciting revenue data from CER sales and expected future sales,
taking into account confidentiality requirements. A suitable anonymization and
aggregation needs to be proposed.
c) Recommend approach to monitor sustainable development of CDM project in India in the
future e.g. design of templates to be used for surveys/ interviews and coverage of project
location.
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4. Identification of barriers encountered during project implementation
A methodology will be developed for analyzing the barriers differentiated by project type,
type of project proponent, location (state) and reporting it in a sector wise/ project types
manner on an aggregate basis. Barriers will be differentiated into a) technological), b)
financial, c) organizational, d) registration, e) other
5. Developing the CDM road map in India
a) Identify and justify the most appropriate areas for CDM projects in the country in
accordance with NAPCC and National Strategy for Sustainable Development, in
accordance with the future global Carbon/ CDM Market scenario;
b) Give a project-type specific and sector wise projection of projects for the second
commitment period, based on different demand and CER price scenarios;
c) Prepare a road map for achieving the targets and improving the contribution of CDM
projects to sustainable development, taking into account the demand situation or CERs
from Indian projects registered after 2012, including
 Assess the potential for domestic demand of Indian CERs;
 Requirements for improvements in the approval process of the NCDMA;
 Monitoring and verification for sustainable development contribution of CDM projects;
 Outreach of India in the international CDM market to identify buyers;
 Involvement of financial institutions to mobilize funding for CDM projects;
 Outreach to NGOs in order to prevent internal challenges to the development of CDM
projects through coordination between NGOs, CDM project developers and public
institutions.
6. Recommending suitable measures
Based on the findings of tasks above and the national circumstances, the study will
recommend corrective remedial measures for the NCDMA for:
a) larger participation of Industry in emerging future global Carbon/ CDM Market;
b) enhancing efficiency of project registration with CDM EB;
c) developing synergies between CDM and NAMAs for sustainable development;
d) harnessing demand for Indian CERs post-2012. This task should assess:
 possible buyers for Indian CERs post-2012
 specific requirements of such buyers regarding the characteristics of the CDM
projects from which CERs accrue; and
e) achieving sustainable development benefits for projects registered after 2012. This task
should assess:
- Possible improvements in sustainable development criteria applied by the
NCDMA during the host country approval process;
- Possible additional requirements for CDM project developers to enhance
sustainability benefits of their projects;
- Monitoring and verification of sustainable development benefits.
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Box 1: Possible SD indicators
Social well being
Impacts of CDM project on local communities in terms of livelihood support activities; does
the project activity support local communities in
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Poverty alleviation activities
Employment generation;
Vocational training and skill development;
Education
Impacts on local infrastructure for better living standards; Is it supporting local Infrastructure
development for better accessibility of
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Drinking water facility;
Irrigation;
Electricity;
Road connectivity;
Primary health;
Communication
Economic well being
Is the CDM investment inline with the policy/developmental goal of the Government:
1.
2.
Is it supporting the activities promoted by the state/local government;
The impacts of project investment on
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Land use/ land use change;
Resettlement and rehabilitation;
Agriculture and Horticulture,
Animal Husbandry; Fisheries; Poultry farming;
Volume of funds spent by CDM project developers for the local population
Considering the time frame of the study (about 6 months), a set of indicators may be
proposed by the consultants to be discussed and agreed by the steering committee.
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7. Structure of the Report
Executive Summary
Introduction

Briefly describe the registered CDM projects/ activities in the country differentiated
according to project types and status of CER issuance;

Establish the SD indicators considering the National Policy, including implementation of
the earmarking of 2% CER revenues;

Develop methodology for selection of significant sample of registered CDM projects:
o Analyzing Sustainable Development;
o Identifying inefficiencies and barriers in project registration; and
o Preparing a Road Map of CDM;

Describe the approach of the Study;

Include the limitations of the study

Aggregate description of sample of projects visited (summary statistics of the sample)
Analysis of the future global Carbon/ CDM Market development and opportunities for
CDM Project development in India

In-depth analysis of the existing Carbon/ CDM Market and emerging future trends for
and obstacles if any, to CDM;

Projecting the future potential of Carbon/ CDM Market for India;

Role of NAMAs in the future Carbon Market an implications for India.
Sustainable Development of CDM Projects in the country

Describe suggested criteria used to assess SD

Assessment of the CDM projects disaggregated according to project types/ sector wise
pattern;
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Identify the sectors and communities supported by CDM in positive way;
Identify the states and communities benefited from CDM;
Recommend measures for achieving better penetration of CDM according to project
types and states.
Analysis for CDM project implementation

Identify the key issues in implementation of CDM Projects;

Analysis of CDM projects accordingly to project types/ sector;

Analysis of CDM projects according to project developer type;

Analysis of CDM projects according to states-wise pattern;

Potential and harnessing of demand for Indian CERs post-2012;

Recommend measures for improving efficiency in development and registration of CDM
project across sectors and states.
Developing the CDM road map in India

Identify the most appropriate areas for CDM projects in the country;

Project-type specific projection of projects for the second commitment period;
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
Road map for improving the contribution of CDM projects to sustainable development.
8. Timeline
a) Propose project timeline at the inception meeting
b) Total duration of project should not exceed four months
9. Deliverables
a) Monthly progress reports and meetings with the instructing party
b) English report with maximum 60 pages (excluding annexes) in soft and hardcopy
c) Executive summary of the report (maximum 5 pages)
d) Power Point presentation of the reports findings / roadmap
10. Qualification of the expert team
The expert team needs to have
- experience between 5 to 15 years in the implementation of the CDM in the Indian
context, preferably through active project development, CDM consultancy or auditing
of project proposals
- Excellent knowledge of the CDM modalities and procedures
- Good working relations with the NCDMA, CDM consultants and key NGOs
- Excellent knowledge of international climate policy and international carbon markets
- Absence of conflict of interest (e.g. CDM project developer)
- Language skills in English and Hindi
- Refer to the evaluation grid (Annexure 1)
Past experience in evaluation of sustainable development contribution of economic activities,
as well as an academic degree in a social science would be a plus.
11. Date of submission of the technical and financial proposal
28.05.2012 at 10.00 AM
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