- Optimizing the technological selection process reduces investment costs.
- Optimizing technology selection results in reducing operational costs.
The Benefits of Clean Development Mechanism 2012 Report shows that CDM Projects
Most of your business' greenhouse gas emissions cost you money! Electricity, fuel, raw materials, waste disposal, business travel, and so forth. As a clear result reducing your business' carbon footprint will directly and indirectly save you money meeting your environmental and financial goals!
Furthermore, a CDM project approach supports your cost strategy in two ways:
There is little doubt that worldwide environmental legislation will become tougher and wider-spread! Coincidentally, the demand from individuals as well as from business partners for companies which show and prove their environmental responsibilities will rise significantly!
Those companies which put their carbon footprint reducing activities NOW are the ones which can agilely respond to these new demands and business opportunities!
Think about being one of the first ones! Think about being ahead of your competitors!
Client demand for environmentally sound products and services is steadily and dynamically growing and customers are focusing more and more on the whole supply chain not only one step in production. In case that your company takes environmental action by setting up environment policies for your procurement you will strengthen your brand as well as attract new business partners and new clients as well!
Going green strengthens your brand and attracts new clients and business partners!
All over the world the awareness for climate change is emerging steadily. Hence, governments will start or enhance initiatives to reduce the carbon footprint. By implementing your project as a CDM project you benefit from voluntarily project initiatives to optimize your carbon emissions!
In contrast to private or official tenders the UNFCCC approach aims at using the best technology or the best system respectively in stead of meeting certain national or international standards. These standards are a minimum requirement not best practice!
Furthermore, CDM experts provide each project with a neutral point of view concerning the selection of technologies and thus are free of any third parties influences. A manipulated decision will result in reduced emission reductions and reduces the potential financial benefit.
By using best practice technologies and systems cost efficiency, energy optimization and emission reduction are well balanced. The result of this equilibrium is a reduction in operative costs and the guarantee of utilization of latest and proven technology.
Finally, the CDM aims at reaching sustainable positive effects on the climate by reducing emissions and optimizing energy utilization.
The clean development mechanism was designed to meet a dual objective:
CDM projects earn tradable, saleable certified emission reduction (CER) credits that can be used by industrialised countries to meet a part of their emission reduction targets under the Kyoto Protocol.
Benefits of CDM projects include (1) investment in climate change mitigation projects in developing countries, (2) transfer or diffusion of technology in the host countries, (3) as well as improvement in the livelihood of communities through the creation of employment or increased economic activity.
CDM Projects prove more efficient use of capital invested!
CDM projects are 3-4 times larger in terms of power generation capacity!
CDM projects are 15% (solar photovoltaic) to 50% (geothermal and solar thermal)
less capital intensive!
Reference: CDM Benefits, UNFCCC Web Site, 2013