The number of new projects entering the Clean Development Mechanism is this month heading for its lowest level since July, according to figures sent yesterday by the UN Framework Convention on Climate Change. The number of projects seeking verification by the firms is 159 so far this month, with three business days to go. That’s 28 percent less than the 221 projects entering the program last month. There were a record 276 in November. Unless they are located in least-developed nations, projects must be registered by the end of this year to be eligible to sell emission credits to factories and power stations in the European Union carbon market, the world’s largest by traded volume. The UN-overseen regulatory board of the mechanism is this year reviewing the so-called CDM, the the biggest international offsetting system. Under the program, rich nations can offset their own emissions by cutting greenhouse gas in poorer countries. There are about 5,926 projects seeking registration and 2,956 registered, according to UN data compiled by Bloomberg. “Given the limited participation of parties in the second commitment period of the Kyoto Protocol, and the existence of the Dec. 31, 2012 EU-emissions trading system deadline, a severe drop in demand for validation services, and slowed growth for verification services are expected after 2012,” said Werner Betzenbichler, general manager of the Designated Operational Entities & Independent Entities Association.
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