Millions of CDM credits could be generated after the approval of a biodiesel methodology.

Last week, the executive board of the clean development mechanism (CDM) approved a methodology for the production of biodiesel for use as a fuel.

The use of biodiesel from waste oil and waste fats has already been approved by the board to generate carbon credits in a different methodology, but last week's go-ahead marks a step change in policy.

The new methodology will allow biodiesel from crops that have specifically been grown for fuel, a move that has been controversial due to its potential competition with other land uses such as food crop production.

However, the new methodology (ACM0017) dealt with concerns that developers may chop forests down to make room for planting vegetation for fuel, said First Climate, a carbon asset management company that sponsored the methodology.

"The methodology only allows for generation of carbon credits through dedicated plantations that are established on degraded lands or lands degrading at the start of the project activity,” First Climate said in a statement.  

The CDM board’s approval paves the way for small and medium-sized projects with plantations of 1,000-5,000 hectares, Joachim Sell, head of forestry and biofuels at First Climate, told Point Carbon News.

He said projects approved under the methodology would compete against “critical large scale projects aimed at exportation and leading to land-use conflicts”.   

The methodology also addresses the issue of double counting, according to First Climate. 

Double counting can take place whereby the emission reduction achieved is credited twice, in this case once to the grower of the biofuel and, if sold to a buyer with a carbon cap, again to the consumer.

“Only the producer of biodiesel is allowed to receive carbon credits. Producer and consumer are contractually bound to each other to allow for adequate monitoring and to avoid double counting,” it said.


Source: www.pointcarbon.com/news/1.1257543