ENDESA OF SPAIN has registered one of its hydropower projects in Peru with the Spainish Office for Climate Change. Endesa is the first Spanish company to submit a clean development mechanism (CDM) project for approval. Approval of the 75MW Callahuanca project could allow Endesa to obtain emission reduction certificates worth around 30,000 tons of CO2 per year.

CDM projects encourage sustainable development in third world countries and completed projects that are registered allow the owner to obtain emission reduction certificates toward Kyoto Protocol targets. The only legal framework for the use of CDM projects is the European Directive, which regulates the use of CO2 emission reduction certificates in the trading of greenhouse gas emissions in Europe.