Canada and India sign Memorandum of Understanding on Clean Development Mechanism Initiatives

Montreal, December 8, 2005 – Canada and India signed a Memorandum of Understanding to strengthen dialogue and cooperation on climate change today. This signature occurred during the United Nations Climate Change Conference, the largest intergovernmental meeting on climate change to be held in recent years, and the first meeting of the Parties under the Kyoto Protocol.

As a developing country, India is able to host Clean Development Mechanism (CDM) projects, as defined under the Kyoto Protocol to the United Nations Framework Convention on Climate Change. The CDM allows for emission reduction projects between industrialized countries with greenhouse gas (GHG) targets and developing countries. The credits earned from CDM projects can be applied against the emission reduction targets of developed countries. In addition to reducing GHG emissions, CDM projects must also contribute to the sustainable development of the host country.

For Canada, the CDM provides opportunities to generate emission reduction credits, access new markets, create investment opportunities, and demonstrate environmental leadership. Benefits to India as the host country include potential investment growth in priority sectors of the economy, access to climate-friendly technologies, socio-economic benefits due to enhanced infrastructure and improved employment opportunities, health benefits resulting from improvements in local air quality, improved energy efficiency, reduced energy costs and reduced dependence on fossil fuels.

It is anticipated that economic and environmental cooperation between Canada and India will continue to increase as opportunities for CDM projects are identified. Canada looks forward to the opportunities that cooperation on CDM projects may bring for both countries.

In addition, Canada's High Commission in Delhi ran a climate change drawing and essay competition last month in cooperation with HindustanTimes.com, where school children, age 12-16, were invited to submit drawings and essays on the impact of climate change and, in the case of the essays, what can be done to address it. Ten drawings and six essays are on display during the conference, at street level in the Palais des Congrès near the Saint-Antoine entrance.

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