Carbon Credit Mechanism

Sustainable Industrial Development - A National undertaking to forge a national purpose

Kyoto Protocol and Trading in Carbon Credits

The Kyoto Protocol (KP) provides for the limitation/reduction of Green House Gas (GHG) emissions.

The Protocol sets numerical emission reduction targets for industrialized countries. Reductions by 2012 should be, on average, 5.2% against the level in 1990 (the base year).

The Clean Development Mechanism (CDM) is one of the flexible mechanisms put in place under the KP to enable industrialised countries to meet their GHG emission reduction targets by funding projects in developing countries with the aim of achieving sustainable development.

Under the CDM, emission reduction projects are undertaken in developing countries, with very often lower greenhouse gas abatement costs than if carried out in industrialised countries. Eligible greenhouse gases are: carbon dioxide, methane, nitrous oxide, perfluorocarbons (PFC’s), hydrofluorocarbons (HFC’s) and sulphur hexafluoride).

The primary CDM market was worth $ 7.4 bn in 2007.

Mauritius is eligible, as a non-annex 1 party and signatory to the UNFCCC and Kyoto Protocol, to host CDM projects.

For each ton of carbon dioxide equivalent that is reduced as a result of a CDM project, a Certified Emission Reduction unit (CER), also termed “carbon credit”, is issued and can be used/purchased by industrialised countries for the fulfilment of their commitments.

CERs can be sold by the project participant, thereby generating a monetary revenue stream (denominated in hand currency typically Euros).

A Designated National Authority (DNA) has been set up, since 2003, at the Ministry of Environment and Sustainable Development, to facilitate business entities in Mauritius to trade in carbon credits. The DNA administers all project applications for CDM approval, consistent with the country’s sustainable development priorities.

Since 2010, CDM projects are regulated through the Environment Protection (Designated National Authority) Regulations 2010 (a copy of the regulations can be downloaded at the following site:

Potential projects include, inter-alia:
use of renewable energy
use of biomass residues
energy efficiency measures
waste management practices

CDM Projects processed by DNA:
Letters of No-Objection have been issued to the following projects:
• Britannia 25 Mega Watt Wind Farm,
• Bigara Wind Farm Project,
• Plaine des Roches windfarm project, and
• Mare Chicose Landfill Gas-to-Energy Project.

Letters of Approval have been issued to the following projects
• Compagnie Thermique de Savannah Ltée (CTSav) bagasse-based energy project,
• Waste-to-Energy (WtE) project,
• Mare Chicose Gas-to-Energy project, and
• Plaine des Roches windfarm project.

For more information or for modes of application and processing of CDM project in Mauritius please refer to local DNA Unit at :