“As the top developer of large hydro CDM projects in India, we have now ventured into the field of preparing Compliance Report Assessing Application of Article 11b(6) of Emissions Trading Directive to Hydroelectric Project Activities Exceeding 20 MW (as per the WCD Guidelines) in order to facilitate sale of CER’s from large hydro projects in Emission Trading Scheme,” said Ms Pamposh Bhat Country Manager-India, Perenia Carbon Pvt Ltd.

The company is already involved in assessing the two large hydro projects in India namely Budhil Hydroelectric Project (70 MW) and Jorethang Loop Hydroelectric Project (96 MW) for compliance with the EU WCD Guidelines. 

Large hydropower projects can adversely affect development in certain regions and have unwanted social and environmental impacts. On the other hand, they can also do much to promote human development in a way that is socially equitable, environmentally sustainable and economically viable.

The rules for hydro CDM projects states that “In the case of hydroelectric power production project activities with a generating capacity exceeding 20 MW, Member States shall, when approving such project activities, ensure that relevant international criteria and guidelines, including those contained in the World Commission on Dams November 2000 Report “Dams and Development – A New Framework for Decision-Making”, will be respected during the development of such project activities.”

Sadly, the interpretation of this article currently varies among Member States and so has led to fragmentation of the carbon market and uncertainty for its participants.

Essentially, when preparing a compliance report, to be accepted by Member States, the PP must demonstrate 7 strategic priorities set out in the World Commission on Dams. The Compliance Report (based on documents, visits and interviews may be prepared either by one of the participants in the project or by a third party on behalf of the participant (an outside consultant/expert, or a DOE). The Compliance Report should be validated by a Designated Operational Entity (DOE).

Typically the compliance report is modelled on Chapter 8 of the WCD recommendations, consisting of seven strategic priorities for good practice.