A CASE STUDY ON CONTRIBUTION OF POTENTIAL CLEAN DEVELOPMENT MECHANISM (CDM) PROJECTS TO CARBON TRADING IN NEPAL

ABSTRACT
The frequency of extreme climatic events in least developed and mountainous countries are increasing and its adverse impacts are being observed in the livelihoods of local communities. Rapid economic development and incessant tapping of natural resources have posed severe problems for the ecosystem on the planet. Drastic climate change and the escalating trend of the global warming have been triggered by human activities leading to elevated atmospheric carbon (C) and green house gas levels. Global warming has led to season shifting, changing landscapes, rising sea levels, increase in rapid snow melting and so on. Human activities are increasing concentration of Greenhouse Gases (GHGs i.e. carbon-dioxide, methane, nitrous oxide, ozone, and chlorofluorocarbons) with concomitant changes in global climate (IPCC, 2007).The anthropogenic emission of Green House Gases (GHGs) is said to affect in Climate change phenomenon can be limited with the implementation of CDM projects. The emissions by sources in developed countries and removal by sinks in developing countries could be viable options at present. The exploratory research based on secondary information shows that implementation of potential CDM projects; Biogas, Solar-home system (SHS), Microhydro plant (MHP), Improved Cooking System (ICS), wind energy and Carbon Sequestration in the reduction of GHGs emission seems considerable. The cost return analyses for different potential CDM projects were evaluated. The total installation cost for per plant Biogas, per KW MHP and per unit SHS would cost US$617, US$ 6788 and US $816 (in year 2010) respectively whereas the returns in terms of CO2 saving in tone are 148, 7, 5 respectively in 20 years while Carbon Sequestration projects cost US$ 300 per hectare for three years with higher amount of potential returns. The potential CDM projects are subjected to have more contribution with tangible as well as intangible values. The reduction in forest pressures effect the reducing in GHGs emission. Similarly, replacement of imported fossil-fuels and electrification of remote areas of the counties becomes the leading issues at present. The study recommended those projects that could contribute a significant carbon credit as well as those could become the sustainable energy sources too. Keywords: Clean Development Mechanism (CDM), Climate Change. Sustainable energy, Co2 Pubished and presented as Acharya, U. R. R. Subedi, S.K. Sharma (2010),. Contribution
of Clean Development Mechanism (CDM) Projects to Carbon Trading in Nepal. International Conference Biodiversity, Livelihood and Climate Change in the Himalayas, Central Department of Botany, Tribhuvan University, Kirtipur, Nepal. pp. 168