http://www.risk.net/energy-risk/news/1594259/india-proposes-kyoto-cdm-reforms-investment

The Indian government is proposing a set of reforms to Kyoto Protocol standards for Clean Development Mechanism (CDM) projects, which involve scrapping further charges to developers, to push through more CDMs and keep investment flows alive, the Indian government climate change representative and government adviser Prodipto Ghosh announced Tuesday.

Ghosh, who is also a distinguished fellow at the Energy and Resources Institute, unveiled a list of proposals that includes the "elimination of financial additionality". He believes this is necessary as the United Nations Framework Convention on Climate Change (UNFCCC) CDM executive board "cannot second-guess the risk reward profile of investors", he said.
The CDM is a carbon market mechanism devised under the Kyoto Protocol, whereby developed countries are encouraged to invest in carbon reduction projects in developing countries. Investors generate Certified Emission Reduction credits (CERs) in return, which can then be traded in the European Union's Emission Trading Scheme (EU ETS).
India holds around 24% of the global CDM market, according to UNFCCC data.
"There is a fair measure of convergence of developed and developing countries' ideas for CDM reforms," said Ghosh, speaking at the Carbon Market Insights conference in Amsterdam. "I don't think CDM reforms will be a stumbling block to a detailed outcome. It will happen probably soon in the process because I don't think other developing countries are far apart."
The Indian government has also proposed the creation of an International Methodology Development Fund, which will scrap charges for first-time project developers, to keep foreign investment flows liquid. Among other reforms, the Indian delegation says that removing the burden of costs will allow Indian CDM to past Phase III (2012–2020).
India, and the largest CDM project developer, China, has come under heavy criticism for failing to sign up to a legal binding agreement to reduce emissions.

An in-depth article on the Indian CDM market, Picking and choosing, will appear in the March issue of Energy Risk, as part of a special report on carbon trading, and online at www.energyrisk.com or www.risk.net.