A CDM project activity involves generally, the following 5 stages: Stage 1: Project Idea Note, Stage 2: Project Design, Stage 3: Project Validation, Stage 4: Project Registration and Stage 5: Credit Issuance and Delivery
Stage 1: Project Identification
At this initial stage, a project is identified and we begin by writing a Project Idea Note (PIN) containing a description of the planned project, including expected amount of emission reductions, other environmental and social benefits, financial considerations and risks. The PIN also contains an assessment of the proposed project’s compliance with the different eligibility criteria.
Stage 2: Project Design
We develop/assist to develop Project Design Documents (PDDs) as guided by the CDM Executive Board (CDM-EB). The main elements of a PDD are:
- Project description and duration;
- Baseline methodology and estimates;
- Monitoring plan;
- Environmental Social Impact Assessment;
- Stakeholder comments.
Stage 3: Project Validation
Once the PDD is completed, we seek the services of a CDM-EB approved/accredited Designated Operational Entity (DOE) for the validation of the project.
Stage 4: Project Registration
After successful validation, a registration request may be submitted to either; 1) the CDM Executive Board OR 2) a Voluntary Climate Exchange Market. The DOE handles the request on behalf of the project developer.
For submission to the CDM – EB: A request for registration includes:
- DOE’s Validation Report;
- Evidence for authorisation of the private and/or public entity involved as a project participant;
- Letter of Approval (LoA) issued by the host Designated National Authority (DNA);
- Letter of Approval (LoA) from Annex 1 country (not necessary prior to registration in all cases);
- Declaration of Non-Diversity of ODA by Annex 1 country (not necessary prior to registration in all cases);
- Instructions for the allocation of Certified Emission Reductions (CERs).
For a Voluntary Market submission: A request for registration includes:
- DOE’s Validation Report;
- Evidence for authorisation of the private and/or public entity involved as a project participant;
- Instructions for the allocation of Verified Emission Reductions (VERs).
Stage 5: Credit Issuance and Delivery
Once a project is operational, to ensure sustainability of the project, an ongoing cycle of monitoring, verifying and issuing of CERs is maintained throughout the duration of the CDM project agreement. An accredited DOE is involved in each cycle and requests issuance on behalf of the project developer.