The document discusses issues with the clean development mechanism (CDM) under the Kyoto Protocol. It notes that while CDM aims to fulfill the goals of Articles 2 and 3 of the Protocol, the development benefits have not adequately reached local communities. It questions whether designated operational entities examine development benefits stated in project design documents and whether national authorities properly review projects. It also examines indicators that could be used to better quantify sustainable development benefits and ensure environmental additionality of projects. It concludes that reforms are needed to the CDM process to strengthen review of methodologies and development benefits.

1. www.CleanTradeGroup.com

9. Development Benefits Indicators PDD: 60 Criterion Research Question Food Does the project have an effect on the ability of the community to produce sufficient food or produce crop? Forests Does the project have an effect on forests as wood resource and natural product resource? Habitats Does the project have an effect on flora and fauna? Water supply Does the project have an effect on water supply for washing/drinking? Resource depletion: Social and Human Does the project have an effect on the depletion of resources required for its manufacture or operation? Jobs Does the project have an effect on number of diversity of jobs and raising quality of jobs and there numbers Freed time Project have an effect on the quality of life effect on local human health of outdoor and indoor air pollution, preventing disease , respiratory inhalation, backache, burns etc. Education Project have an effect on improving the education level Skills Does the project have an effect on developing and improving new skills? Income generation Does the project have an effect on income generation? Or does it have any possibility to get more opportunities to increase income? Energy Does the project have an effect on the level of service energy on total needs of community Affordability Project has an effect on the cost of community of the service provided by the project as a percentage of income. Infrastructure Effect of project on infrastructure will increase. shelter and health services Supply Chains Project have an effect on in simulating local supply chains for spares, maintenance and manufactures? Local equipment Effect of project on the locally manufactured equipment.

14. CER Price DNA risk Validation risk Monitoring risk Verification risk Registration Risk EU ETS market price EURO 5 15