Various steps involved in a Clean development management project
- 1. Stage I: Project Design, Validation, and Registration Stage II: Project Verification and Issuance of CDM Credits STEPS INVOLVED IN A CDM PROJECT
- 2. STAGE I: Project Design A project developer, which may be an individual or a company, initiates a new CDM project by preparing a standardized proposal called a Project Design Document (PDD). PDDs include detailed: 1. Project information on technologies that will be employed 2. The expected environmental impacts, 3. A calculation of the projected emissions with and without the project, 4. The approved methodologies to be used for monitoring and quantifying emission reductions from the project.
- 3. Registration It is submitted to the host country’s Designated National Authority (DNA), usually the Ministry of Environment, which is that country’s central point of contact for CDM projects. The DNA reviews the proposed project and assesses whether it will contribute to national sustainable development goals, and if so, the DNA issues a Letter of Approval.
- 4. Validation The completed PDD must then be “validated,” for which the project proponent must hire an accredited auditor, known as a Designated Operational Entity (DOE), to conduct an independent and thorough audit of the project proposal. These auditing firms are typically private companies that are judged capable of conducting credible and independent technical assessments of emission reduction projects.
- 5. WHAT’S NEXT The Board assesses the proposal and validation report and can 1) reject the project; 2) call for it to be improved and re- submitted; or 3) approve it for registration. After registration, projects generally move forward for implementation
- 6. Stage II: Project Verification 1.After the project has been operating and monitored for a certain period of time. 2. The project developer is required to hire another accredited auditor to verify the amount of emission reductions achieved . 3. The project’s monitoring reports and the auditor’s verification reports are then submitted to the Board for approval. .
- 7. Issuance of CDM Credits If each report is approved, CERs are issued to the project participants. A project must continue to submit monitoring and audit reports and credits are issued for the duration of its crediting period.