Renewable Energy and the Clean Development Mechanism in Tamilnadu: Global Benefits? With Local Costs?

At a time when energy supply is vital for development and reducing emissions is vital for mitigation of climate change, renewable energy comes forth as a possible solution. This paper investigates the Renewable Energy Clean Development Mechanism Projects that have come up in Tamilnadu, India. The impacts on local sustainable development from the projects are evaluated. The Additionality requirements and existence of leakage among the Clean Development Mechanism projects in Tamilnadu are also investigated. The evidence from the field seems to suggest that some impacts on local sustainable development may be negative. The Additionality conditions seem to be weak given the analysis of the state industry and the existence of possible leakage is found.