Clean Development Mechanism, a flexible mechanism under the Kyoto Protocol, supports countries from the South in sustainable development by selling emission reduction certificates to the carbon market.

On the one hand CDM supports a buyer from the North who has to remain under his specifically defined CO2-level and who is willing to buy emission-certificates to achieve this goal. On the other hand it offers the sellers from the South co-financing for investments and technology transfer.  Especially Programmatic CDM takes advantage of the CDM idea and offers possibilities to combine and extend emission mitigation projects through bundling of projects and the possibility for participants to attend the same Project Idea Note. This decreases bureaucratic expenditure and makes Programmatic CDM more interesting  for smaller projects which also can be joined by many interested parties.

Core point of a CDM-Project is to analyze processes in energy consumption, rational energy appliances and to define the substitution potentials. 

In the beginning of 2009 the Department of  Hydrology and Climate Change (MoNRE)  in cooperation with German Technical Cooperation (GTZ) started to implement an advanced training in order to promote and indicate the idea and chances of Programmatic CDM.  In September 2009 the CDM potential of candidate projects in chosen sectors was analyzed in a debriefing workshop.  

In this workshop the results of a short-term study which was accomplished on behalf of Vietnamese – German Forestry Program Component II (Processing, Trade and Marketing of Timber Products) on the use of wood waste for energy production in the wood processing cluster Quy Nhon (Binh Dinh Province) and concluded that the most feasible  programmatic CDM approach of the surveyed sectors lies in the wood processing sector. Still there are uncertainties which have to be eliminated and information needs to be detailed. 

In consequence Component II commissioned a follow-up feasibility study in Binh Dinh Province in March 2010 which was conducted by a CDM Forestry-expert. The survey took place in five chosen enterprises in Phu Tai Industrial Zone of Quy Nhon City with a capacity of 4.000-12.000 m³ of final products each year. Contents of  the survey were especially the data collection on electricity and thermal energy consumption, the quality and quantity and the utilization of by- to figure out the efficiency of actual processing and drying-systems and rational energy use. 

As consequence of this data acquisition detailed emission mitigation potential, possible options for energy savings and the installation of cogeneration plants will be figured out in detail. A final report will be available in June 2010. 

The studies are available on request to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it