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           Climate change, Kyoto Protocol and CDM

Climate change is an emerging risk facing the industry sector in Asia and the Pacific. Every business will be impacted directly or indirectly and must understand available options to manage risks and maximise opportunities.

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Introduction to the Clean Development Mechanism (CDM) and Pre-Screen Tool

CDM Pre-Screen Tool for Industry in Developing Countries (328KB-pdf)
Many industrial companies in Asia are aware of the Clean Development Mechanism (CDM) under the Kyoto Protocol. This information paper provides an introduction to the Kyoto Protocol and CDM. The paper also explains the excel-based Pre-Screen Tool (236KB-xls) for companies in developing countries that are interested in participating in the CDM. It helps companies to:

  • Determine if their project is eligible for CDM;
  • Calculate an initial emission baseline and potential reduction through CDM; and
  • Calculate the payback period of costs of the CDM application procedure with CER revenues.


Briefing paper on climate change


An 8-page briefing paper “Climate Change – What Every Asia and Pacific Company Must Know (305KB-pdf) explains the following:

  • Understanding climate change policies and responses: explanation of what causes climate change, the different policy responses by national governments, and the Kyoto Protocol
  • Risks and opportunities to Asia and Pacific industry: explanation of how every company will be affected by climate change, and examples of risks and opportunities for four GERIAP industry sectors (cement, chemicals, pulp and paper, iron and steel)
  • How companies should respond to climate change: what companies should include in their strategy to respond to climate change, which then should be implemented and evaluated regularly
  • What is the Clean Development Mechanism (CDM): an explanation of what CDM is, criteria for CDM projects, eligible projects, the CDM project cycle
  • Case studies of CDM in the Asia and Pacific region: four examples of projects that are eligible for CDM
  • Further information about climate change, the Kyoto Protocol and CDM: important organizations, publications and newsletters


GHG Indicator


The GHG Indicator is a tool that can be used to calculate greenhouse gas (GHG) emissions for a company and can be found at: www.uneptie.org/energy/act/ef/ghgin/.

The “The GHG Indicator: UNEP Guidelines for Calculating Greenhouse Gas Emissions for Businesses and Non-Commercial Organisations” explains how the indicator works.

The GHG Indicator itself is an excel-based programme and GHG emissions are calculated as shown in the figure below. Data are collected for fuel and energy (fuel consumption, electricity use, transport) and for process-related emissions in separate spreadsheets. These data are then multiplied by company specific or standard emission factors. The total GHG emissions for a company are calculated in a summary spreadsheet.

CLimate Change Fig. 1

As part of the GERIAP project a simplified spreadsheet was developed to allow companies to quickly calculate their emissions.

The World Business Council for Sustainable Development (WBCSD) has developed updates and sector specific calculation tools under the “GHG Protocol” initiative. This is an internationally accepted GHG accounting and reporting standard consisting of standards, practical guidance and calculation tools for different industry sectors. Sectors relevant to GERIAP include iron & steel, chemicals (nitric acid, ammonia, adipic acid), cement & lime, pulp & paper. The calculations tools are electronic Excel spreadsheets with accompanying step-by-step guidance. Found at: www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?MenuID=1


Copyright© United Nations Environment Programme 2006

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