Implementation of CDM in Sri Lanka

Thilina Jayarathne

Among the many benefits that forests provide, there is growing appreciation of their role as major storage of carbon. Growing trees, through the process of photosynthesis, absorb carbon dioxide, storing vast amounts of carbon in their wood.

Rising CO2 levels over the past century are held responsible for global warming. Forests contain some 80% of all the carbon stored in land vegetation, and about 40% of the carbon residing in soils worldwide. Deforestation is a major source of greenhouse gases such as CO2 which is about 20% of total emissions. The 1997-1998 fires in Indonesia alone were shown to have contributed up to 40% of the annual emissions from anthropogenic fossil-fuel combustion. Further deforestation will accelerate the problems of rising atmospheric CO2 concentrations that are caused by the burning of fossil fuels.

The Clean Development Mechanism (CDM) was created as part of the Kyoto protocol to achieve the dual objective of lowering global greenhouse gas emissions at the lowest overall cost while supporting sustainable development initiatives within developing countries. It is based on the notion that it is much cheaper to achieve the same measure of carbon reduction in a developing country than in an industrialized country.

The CDM allows Annex I Parties (those required to reduce emissions) to implement projects that reduce emissions in the territory of a non-Annex I Party (those with additional emission rights). The certified reduction units (CERs) generated by such projects can be used by Annex I Parties to help meet their emissions targets while the projects also help non-Annex I Parties to achieve sustainable development. The CDM is expected to generate investment in developing countries, especially from the private sector, and promote the transfer of environmentally-friendly technologies in that direction.

In addition to energy projects, such as saving energy, developing alternative energy sources and active removal and storage of greenhouse gases, land use, land-use change and forestry (LULUCF) activities were recognized as relatively cost-effective way of combating climate change. This is accomplished either by increasing the removal of greenhouse gases from the atmosphere (e.g. by planting trees or managing forests), or by reducing emissions.

Sri Lanka became a party of Kyoto protocol in 1994. As 76% of the population in Sri Lanka lives in the rural areas where the main activity is agriculture it has a good potential for CDM projects. Energy, Transport and Forestry are the main aimed areas in Sri Lanka. Lack of Financial Support, Lack of access to new information, Fear of adopting new technologies, Unwillingness to take any risk in purchasing new technologies, People’s protests or reluctance to accept new, energy-saving technologies, lack of information on the effectiveness, running cost, operational phase and after sales service, lack of training, Economic and political constraints, New policies that flavor cleaner technologies and ban polluting, Cultural influences are the main constrains to implement CDM projects in Sri Lanka.