The Clean Development Mechanism (CDM) established under the guiding principles of the Kyoto Protocol has encouraged organizations in developed nations to fund geothermal projects in developing nations. The CDM can in that way promote and/or accelerate the development of geothermal energy utilization in developing countries. As a result CDM is becoming a very powerful incentive for geothermal project development.
EFFECTS OF CDM ON GEOTHERMAL DEVELOPMENT
Since 2008, CDM considers geothermal utilization for both generations of electricity and for space heating. The platform to sell carbon credits, created by the CDM, is an important additional revenue stream contributing to development of commercial scale geothermal projects and makes a number of geothermal projects attractive that have until now been uneconomical.
Geysir's joint venture in China is going to take advantage of carbon credits (CERs) issued by the CDM, which is thereby assisting further development.