The Clean Development Mechanism (CDM) has been recognised as one of the successes of the Kyoto Protocol. The scheme now has just under 7,300 projects registered with 1.3 billion credits issued in the 2008 to 2012 period and another 6 billion credits in the pipeline up to 2020.
Registration of projects under the CDM for carbon credits is, however, a lengthy and costly process. Inefficiencies are often due to the project-by- project approach to registration. This approach makes it very difficult to achieve economies of scale. One way of overcoming this barrier, is to group projects together in Programmes of Activities (PoAs). The key advantages of PoAs include reduced costs, time to market, and certification effort. The potential for expansion of the programme over time is also a major advantage.
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