Flexible Mechanisms

Emission Trading
Joint Implementation
CDM
The Kyoto Protocol : basis for the CDM market

Kyoto Protocol (1997)

The Protocol creates legally binding obligations for 38
industrialized countries to return their emissions of
greenhouse gases to an average of 5% below their 1990
levels by 2012
Marrakech Accords (2001)
Define the principles of the Kyoto Protocol’s flexible
mechanisms: the Clean Development Mechanism (CDM),
Joint Implementation (JI) and Emissions Trading (ET)
 Emission Trading
• Is a market-based approach used to control pollution by
providing economic incentives for achieving reductions in the
emissions of pollutants.
• Emissions trading, as set out in Article 17 of the Kyoto Protocol,
allows countries that have emission units to spare - emissions
permitted them but not "used" - to sell this excess capacity to
countries that are over their targets.
Kyoto gases that can earn credits

There are over 30 atmospheric greenhouse

gases…But only 6 attract carbon credits:

• Carbon dioxide (CO2)

Relevant to bio-
• Methane (CH4) carbon &
industrial
• Nitrous oxide (N2O) projects

• Perfluorocarbons (CxFx)
Relevant to
• Hydrofluorocarbons
industrial
(HFCs)
projects
• Sulphur hexaflouride
(SF6)
Source: Green Clean Guide (http://greencleanguide.com/2010/12/25/cdm-projects-statistics/)
The role of the Clean Development Mechanism (CDM)

Advantages for developed

countries:

Developed CDM allows relatively low-cost &

countries can developed countries politically acceptable
reduce emissions
to generate ‘carbon
anywhere in the
world credits’ (Certified
Emission
They can count Advantages for developing
these reductions Reductions, CERs)
in developing countries:
towards their own
targets countries inward investment,
environmental & technology
benefits
How a CDM project generates carbon credits

Carbon credits (CERs)

represent the difference

Greenhouse gas emissions

between the baseline and
actual emissions

Project start

Historical Trend Time

 CDM project

Emission reduction Atmospheric removal

Bio-sequestration:
Gas • Afforestation /
recovery & Reforestation
utilization End-of-pipe Avoiding new
• Mangrove / wetland
emissions
Destruction Storage
Reduce emission Land-use
Reduce energy losses
• Animal waste factor Reduce energy mitigation
during transmission/
management consumption
distribution
• Human sewage
Fuel Substitution Energy
• Urban landfill efficiency at • Energy • Agricultural
• HFC generation efficiency practices
decomposition
measures (e.g. reduced
• Cookstoves fertilizer use;
Renewable Fuel • CFLs zero tillage)
Waste
energy switch heat/gas GHG efficiency at
utilisation production
 Gas
recovery &
utilization End-of-pipe Avoiding new
emissions
Destruction Storage
Reduce emission Land-use
Reduce energy losses
factor Reduce energy mitigation
during transmission/
consumption
distribution
Fuel Substitution Energy
efficiency at
generation

• Renewable • Cement
Renewable Fuel Waste
biomass manufacture
energy switch heat/gas
• Wind power GHG efficiency at • Brick-
utilisation production makers
• Hydro
• Solar • Bakeries
• Geothermal • Bio-fuel • Sawmills…
substitution
(e.g.
ethanol,
bio-diesel)
Important Participants in CDM Project
 Project developer
 Designated National Authority (DNA)
 Designated Operational Entities (DOE)
 Executive Board (EB)
 CDM Project Cycle
Project developer DOE DNA EB

1. Project Preparation 2. Development of 3. Development of Project Design 4. Submission of the

i. Identification of project Project Idea Document (PDD) PDD and Host
Note (PIN) Country Approval
ii. Pre-screening of CDM- i. Project Description
to Validator
Applicability ii. Select baseline approach
iii. Development of Feasibility iii. Assess additionality
Study iv. Set baseline emission level
(under consideration of CDM
v. Set Crediting Period
Aspects)
vi. Calculate net emission reduction
vii. Develop a monitoring plan Host
viii.Assess environmental impacts Country
ix. Invite stakeholders for comments Approval

8. Project
implementation Registration of Possible review
and monitoring the CDM project by CDM EB 7. 5.
Submission of Make PDD
Validation publicly
Report and available for
PDD 6. 30 days
of Project Validation
9. of Project
Yearly
verification
and Registration of
Possible review
certification
by CDM EB the CDM project
CDM Project Cycle

Guidebook to financing CDM projects

Outline of CDM Project Cycle
Project Idea (Concept) Note (PIN)/PCN)

 Communication tool used by Project developers

and investors easily in the process
 Helps in conceptualizing, financing, screening
and evaluation of projects.
 Prerequisite for more serious negotiations.
 Roadmap for PDD
Project Design Document & Its Purpose

 The project design document (PDD) – key document – involved in

validation and registration
 Part of formal CDM requirements (unlike PIN/PCN)
 It is one of the three documents required for a CDM project to be
registered, along with the validation report and the letter of approval
 A detailed, well substantiated document addressing key questions
 How will the project reduce CHG emissions?
 Why/How is project eligible for CDM?
 How will project risks be managed & shared by PPs?
 What impacts will the project have on the stakeholders and
environment?
 Conveys project information to relevant stakeholders
 Critical elements of a PDD

 Selection of an applicable, approved methodology

 Existing approved methodologies can be used where appropriate
 If no approved methodology exists, can submit new one but it is time consuming

 Assessment & Demonstration of Additionally

 Most critical issue for project acceptance
 Project refused if not proven

 Articulation of sustainable development benefits

 Documentation of stakeholder consultations, permits, etc.
What is a baseline?
 Basic premise: Project level reductions are based on reducing emissions below a
projected reference case or “baseline”.
 Baseline scenario: A hypothetical representation of what would have happened in
the absence of the project.

 Is the “most likely” scenario for what would have happened had the project
not been implemented.
 Is based on certain assumptions and parameters of local circumstances,
economics etc.
CDM Project Registration

 Registration is the formal acceptance by EB of a

validated project as a CDM project activity.
 Registration is the prerequisite for verification,
certification and issuance of CERs
 Registration by EB shall be deemed final 8 weeks (4
weeks for small-scale projects) after the date of
receipt of request for registration unless there is a
request for review
Monitoring a CDM Activity
Project proponents are required to monitor the actual
emissions reductions or sequestration that take place when
implementing the project.

Monitoring includes “collection and archiving of all relevant

data necessary for determining the baseline, measuring
anthropogenic emissions by sources of greenhouse gases
(GHG) within the project boundary of a CDM project activity
and leakage, as applicable”.
Verification & Certification

 Checks if the monitoring report satisfies the requirements of the registered PDD.
 Checks whether monitoring methodologies have been correctly applied.
 Has an on-site inspection conducted or requests any additional information from the
project proponent, if necessary.
 Makes recommendations to the project proponents for any revisions related to the
monitoring methodology for the future crediting period.
 Determines the actual GHG emission reductions by the CDM project activity.
The DOE prepares a verification report and a certification report, both of which will be made
publicly available. The certification report states the verified amount of GHG emission
reductions.
 Certification and Issuance of CERs
 CDM EB receives a request to issue CERs – the CDM EB issues the certified
amount of CERs within 15 days, unless a party involved in the project activity
or at least three members of the CDM EB request a review.
 Certification by the CDM Executive Board on the basis of verification report.
 Issuance of the CERs to the project applicant entity/ies.
 This step is repeated after every round of submission of verification report.
 The proceeds for the adaptation are set as 2 percent of the amount of CERs
issued.
What is Additionality?
For a CDM project, emissions reductions must be beyond or in
addition to – what would have happened in the absence of the
project. This criterion is called additionality.
 Intrinsically (and by definition) linked to the baseline.
 Project emissions must be lower than baseline emissions.
 Used as a criterion to determine whether emissions reductions
are real, measurable and in addition to what would have
happened.
 Is a criterion to ensure that reductions are not counted more
than once.
Concept of Additionality
 A CDM project activity is additional if GHG emissions are reduced below those that would have
occurred in the absence of the registered CDM project activity.
⇒ The DOE shall review the PDD to confirm that the project activity is expected to result in a
reduction in GHG emissions that are additional to any that would occur in the absence of the
proposed project activity.
 PPs have to write explanation of how and why this project activity is additional and therefore not
the baseline scenario in accordance with the selected baseline methodology.
⇒ If the starting date of the project activity is before the date of validation, provide evidence that
the incentive from the CDM was seriously considered in the decision to proceed with the
project activity. This evidence shall be based on (preferably official, legal and/or other
corporate) documentation that was available at, or prior to, the start of the project activity.
 “The tool for the demonstration and assessment of additionality “provides a general framework for
demonstrating and assessing additionality. PPs may also propose other tools for the demonstration
of additionality.
 Integrating Mitigation and Adaptation
 UNFCCC identifies two separate options for addressing
climate change: mitigation and adaptation.
 There are increasing calls to better integrate these two fields.
 Because of long lag times in the climate system, no mitigation
efforts will be able to prevent climate change.
 Conversely, reliance on adaptation alone would lead to a large
magnitude of climate change, to which it would be very
expensive to adapt.
Sustainable development dimension and indicator for CDM project

 Economic
I. Job creation and poverty alleviation
II. Development and diffusion of technology
III. Improvement to infrastructure
 Environment
I. Reduction of pollution
II. Promotion of reliable and renewable energy
III. Preservation of natural
IV. Conserving resources
 Social
I. Improvement of health and safety
II. Engagement of local population
III. Promotion of education
IV. Empowerment of women
 Number of sustainable development claim by indicator

Source: Based on statements in the PDDs for 3,864 projects registered and undergoing registration as of June 2012.
 Technology transferred for project registered and undergoing in
host country

Source: Based on data provided in the PDDs for 3,949 projects registered or undergoing registration as of June 2012. Percentages of technology transfer claims are
based on 3,249 projects where claims could be determined.
 CERs as share of national Co2 emission

Source: CERs from projects registered, undergoing registration and validation, but excludes projects rejected and withdrawn as of June 2012. CERs are annual CERs, as stated in the PDDs which include non-CO2
gases (CH4, N2O, HFCs, PFCs, SF6). National CO2 emissions for 2010 are from the WRI (http://www.wri.org), but do not include emissions of non-CO2 gases. This omission does not change the overall finding.
E+ & E- Policy
What is Additionality?
For a CDM project, emissions reductions must be beyond or in
addition to – what would have happened in the absence of the
project. This criterion is called additionality.
 Intrinsically (and by definition) linked to the baseline.
 Project emissions must be lower than baseline emissions.
 Used as a criterion to determine whether emissions reductions are
real, measurable and in addition to what would have happened.
 Is a criterion to ensure that reductions are not counted more than
once.
Concept of Additionality
 A CDM project activity is additional if GHG emissions are reduced below those that
would have occurred in the absence of the registered CDM project activity.
⇒ The DOE shall review the PDD to confirm that the project activity is expected to
result in a reduction in GHG emissions that are additional to any that would occur
in the absence of the proposed project activity.
 PPs have to write explanation of how and why this project activity is additional and
therefore not the baseline scenario in accordance with the selected baseline
methodology.
⇒ If the starting date of the project activity is before the date of validation, provide
evidence that the incentive from the CDM was seriously considered in the
decision to proceed with the project activity. This evidence shall be based on
(preferably official, legal and/or other corporate) documentation that was
available at, or prior to, the start of the project activity.
 “The tool for the demonstration and assessment of additionality “provides a general
framework for demonstrating and assessing additionality. PPs may also propose other
tools for the demonstration of additionality.
Why Guidance on Policy
 The treatment of policies and measures is a decisive element
 has the capacity to influence policymakers’ behaviour in host countries
Critical Issue
 CDM should not discourage policymakers from adopting
progressive policies and regulations leading to a reduction of
GHG emissions in their own countries
 adoption of progressive regulations
 diminishes the host country’s opportunity to benefit from the
CDM
 grounds that all mandatory GHG reducing activities would
happen anyway and could not be considered additional
Reasoning or Greed!!
 it is indeed difficult to argue that activities mandated by law
would be additional
 Rising Carbon prices and CDM awareness
 CDM is likely to become a factor in the decision making process
 Declaring projects required by law ineligible under the CDM
results in a perverse incentive not to adopt tighter legislation
 consideration of the long-term effect on domestic policies should
be the overriding determinant
E+ Policies
 National and/or sectoral policies or regulations
 comparative advantages to more emissions-intensive technologies or fuels over less
emissions-intensive technologies or fuels
E- Policies
 National and/or sectoral policies or regulations
 comparative advantages to less emissions-intensive technologies
over more emissions-intensive technologies
 e.g. public subsidies to promote the diffusion of renewable
energy or to finance energy efficiency programs
 EB 22, Annex 3, paragraph 6
Dating Limitations!!
 Type E+  11 December 1997
 Only national and/or sectoral policies or regulations under
paragraph 6 (a) that have been implemented before adoption of the
Kyoto Protocol by the COP (decision 1/CP.3, 11 December 1997)
shall be taken into account when developing a baseline scenario.
 Type E-  11 November 2001
 National and/or sectoral policies or regulations under paragraph 6
(b) that have been implemented since the adoption by the COP of
the CDM M&P (decision 17/CP.7, 11 November 2001) need not be
taken into account in developing a baseline scenario
--The Visual Effect--
Implications??
 For E+
 the baseline should be construed in a way that ignores higher emission levels which are
due to distorting policies (E+) if these were implemented after adoption of the Kyoto
Protocol
 This makes sense as it prevents rewarding CDM host countries with “bad” policies with
higher CDM credits than what project developers in these countries would have earned
had these policies not been adopted
Implications??
 For E-
 The CDM EB also ruled that host countries that implemented “good” policies (E-) after
adoption of the Marrakech Accords should in turn not be penalized with less CDM
credits.
 Therefore, a hypothetical situation with non-existing policies and higher emission levels
can be assumed when constructing the baseline.
Review on CDM Implementation
 Sustainable development dimension and indicator for CDM project

 Economic
I. Job creation and poverty alleviation
II. Development and diffusion of technology
III. Improvement to infrastructure
 Environment
I. Reduction of pollution
II. Promotion of reliable and renewable energy
III. Preservation of natural
IV. Conserving resources
 Social
I. Improvement of health and safety
II. Engagement of local population
III. Promotion of education
IV. Empowerment of women
 Number of sustainable development claim by
indicator

Source: Based on statements in the PDDs for 3,864 projects registered and undergoing registration as of June 2012.
 Technology transferred for project registered and
undergoing in host country

Source: Based on data provided in the PDDs for 3,949 projects registered or undergoing registration as of June 2012. Percentages of technology transfer claims are
based on 3,249 projects where claims could be determined.
 Reduction in anthropogenic emission of GHGs????

 Tangible sustainable development for Developing countries ????

CDM and Post 2012 framework

 Current structural limitation of CDM
(A) Atmospheric Reality

Sample global emissions pathways until 2050 for avoiding 2°C

(B) CDM’s Atmospheric Limitation
CDM – Current Mechanism

 The net result is no reduction in global emissions beyond the commitments of the
Annex 1 parties
 Inequitable distribution of CDM projects
Premium emission budget
 Premium emission budgets
 Enable non-Annex I Parties to gain immediate access to global carbon markets by using a portion of their
"premium" to finance rapid pathways to low-carbon economic growth. Any reduction in emissions below current
levels will be tradable, enabling participating Parties to receive further compensation from carbon markets.
 Premium Budgets can enable participating nations to increase significantly their access to low-carbon capital
investment.
 The premium will ensure that there is an incentive and opportunity to mobilize participating nations economies
along a low carbon pathway.
 Parties with Premium Budgets will no longer have to expend scarce resources on costly project by- project proofs
of "what would have occurred." Those savings can be used to finance further investment in low-carbon
development, which in turn can yield further tradable emission reductions.
 Reductions not sold during the Premium Budget period can be banked for the future.
Value Added CDM
Value Added CDM
Conclusion
 CDM, as it is currently structured, does not meet the atmospheric reality, and does not distribute
sustainable development benefits equitably.
 Effective post-2012 framework should embrace five essential elements:
1) deeper reductions by all Annex I Parties;
2) market-based compensation for non-Annex Parties that reduce emissions from deforestation;
3) Premium Emission Budgets for those non-Annex I Parties that wish to move from the CDM's
cumbersome project-by-project approach to full market trading;
4) "Value-Added“ requirements for CERs issued to major developing economies; and
5) a "Sunset" for major developing economies' access to the CDM.
 CDM: Critical Review

 Is the CDM a win-win mechanism providing both sustainable development and

cost effective emission reductions

or

 Is it just another cheap way out for developed countries at the expense of
developing countries hungering for investments??

Paulsson, 2009
 Is the global carbon market is working??
 CDM can be viewed not only as a market, but also as a subsidy and a political
mechanism—it has been effective in achieving the political goal

 Engaging developing countries in controlling GHGs emissions, which have more

immediate priorities than CC as their emissions are high and rising

Source: Wara, 2007, Nature: 445/8

 Answers depend on criteria

 CHINA: shift to gas based power plant from coal fired leveraging sale of CERs
 Developing nations must be part of any effective solution to global warming
 Successful in overcoming funding, logistics and initial skepticism of developing countries
 Energy sector and CO2, major contributor to GHG emission, yet 2/3rd of emissions
reductions involve neither CO2, nor energy production
• Major developing countries and growing economies (China and India) are benefitting.

Source: Wara, 2007, Nature: 445/8

 Is CDM working??
 The projected reductions for all GHGs amounts to 1.75 billion tonne of CO2 eqv.
 This equates to annual reduction of 278 million tonnes, a very small fraction of the
annual global CO2 emissions (26 billion tonnes in 2003)**
CDM- market as well as subsidy from industrialized world to developing world
As a subsidy, it should be judged by how effectively it reduces emissions for each dollar
expended.

Source: Wara, 2007, Nature: 445/8

 CO2 VS HFC-23

 30% of total CER is from capturing and destroying trifluromethane (HFC-23)

 HFC-23 emitters can earn almost twice than-- from selling refrigerant gases as it is
extremely cheap to cut this emission
 Extra cost for providing the technology to developing world will be lesser than buying
CERs
 Similar technological fixes could work for industrial emission of nitrous oxide from
nylon feedstock and fertilizer manufacture

Source: Wara, 2007, Nature: 445/8

 23%

11%
Source: Wara, 2007, Nature: 445/8 62%
 CERs by 2012

The HFC, PFC and N2O projects only account for 2.0% of the projects but represent 29% of the CERs by 2012.
 Is there better options??
 The largest volume of credits (30%) come from capturing and destroying
trifluromethane (HFC-23)
 At current market price (~13US$/t CO2)—HFC-23 credits amount to 4.7 billion
euro upto 2012.
 Installation of technology to cut this emission would cost 100 million euro, saving
4.6 billion euro in CDM credits that could be spent in other climate protection
use..
 Similar technological fixes could work for industrial emission of nitrous oxide from
nylon feedstock and fertilizer manufacture

Source: Wara, 2007, Nature: 445/8

 Way Forward

 Make the global carbon market a market for CO2 rather than for all six kyoto
protocol gases.
 EU and Japan can send a clear signal that after 2012, they are interested in
purchasing only CO2 credits and with a preference to projects in energy sectors
 Industrial emission of HFC-23, nitrous oxide and methane should, at the same
time, be addressed by a separate agreement that fully compensates producers of
these gases for the cost of abating emissions. .
 Review of CDM Literature

 Control mechanisms in CDM

 Creditability of DOEs in assuring quality of CDM projects
 Rejection and review of projects are on increase
 DO CDM projects reduce emission?
 More CERs more emissions

 Are the emission reductions additional?

 Review of 52 Indian CDM concludes that the information provided in PDD is insufficient for DOEs
to assess additionality in transparent way

Paulsson, 2009
 Review of CDM Literature

 Defining baseline for measuring emission reduction

 Issues of leakage
 Cost effectiveness and sustainable development
 Public vs private fund
 MNC increases their business opportunities by financing CDM projects rather following investment
model

Paulsson, 2009
 Review of CDM Literature

 International Standard of Sustainable development

 Whether politically feasible and practically possible
 Tax on CDM and earmark for development, eg. China
 Capacity building of poorest countries to enable them to make CDM projects
 Gold standard

Paulsson, 2009
 Role of DM in a future climate regime

 Sectoral and programmatic CDM

 Policy based
 Setting a baseline nationally/internationally for an industrial sector

 REDD

Paulsson, 2009
 Clean Development Mechanism (CDM) Article 12
Mechanism
CDM allows an Annex B country under the Kyoto Protocol to implement an
emission-reduction/removal project in developing countries (non-annex) to
Eligibility
earn certified emission reduction (CER) credits, each equivalent to one tonne
of CO2 Participation in a CDM project activity is voluntary. Parties participating in the
CDM shall designate a national authority for the CDM (7th COP).
CERs can be traded and sold, and used by industrialized countries to a meet a
part of their emission reduction targets

Approval
CDM
A CDM project must provide emission reductions that are additional to what
would otherwise have occurred.
The projects must qualify through a rigorous and public registration and
issuance process designed to ensure real, measurable and verifiable emission
reductions that are additional
The mechanism is overseen by the CDM Executive Board, answerable
ultimately to the countries that have ratified the Kyoto Protocol.
Benefits
>UNFCCC Adaptation Fund,(to finance adaptation projects in developing
country Parties to KP that are particularly vulnerable) 2% levy on CERs issued
by the CDM.
>Developed Country: Reducing emissions within their own boundaries may be
costlier for Annex 1 countries. Provides flexibility in how they meet their
emission reduction limitation targets.
> Developing Country: Stimulates sustainable development and emission
reductions, transfer or diffusion of technology, improvement in livelihood of
communities through the creation of employment or increased economic
activity, investment in climate change mitigation projects
What is a baseline?
 Baseline scenario: Qualitative representation for what would have happened in the
absence of the project.

 Baseline emissions: Quantitative emissions associated with the baseline scenario.

 Baseline scenario
 The baseline (scenario and emissions) for
a CDM project activity is the scenario
that reasonably represents GHG emissions
that would occur in the absence of the
proposed project activity.

 Difference between the baseline emissions

and GHG emissions after implementing
the CDM project activity (project
emissions) is emission reductions.
Baseline scenario
☞ A baseline (scenario and emissions) shall be established:
(a) By PPs in accordance with provisions for the use of approved and new methodologies;
(b) In a transparent and conservative manner regarding the choice of approaches, assumptions, methodologies,
parameters, data sources, key factors and additionality, and taking into account uncertainty;
(c) On a project-specific basis;
(d) In the case of small-scale CDM project activities, in accordance with simplified procedures developed for such
activities;
(e) Taking into account relevant national and/or sectoral policies and circumstances, such as sectoral reform
initiatives, local fuel availability, power sector expansion plans, and the economic situation in the project sector.
☞ Before calculating baseline emissions, it is necessary to identify baseline scenarios.
☞ A baseline (emissions) shall cover emissions from all gases, sectors and source categories within the project boundary.
 ORGANISATION
CDM additionality tool
STEP 0 – Preliminary screening based on the starting date of the project activity “An optional flow chart,
Start date of claiming credits for project should precede date of registration adopted by the
executive board in
CDM consideration proved = PASS October 2004,
applicable to any type
STEP 1 - Identification of alternatives consistent with current laws and regulations of project for the
If proposed CDM project is the only alternative left, the project is non-additional demonstrate of
additionality.”
More than one alternative = Pass

STEP 3 - Barrier Analysis

STEP 2 - Investment Analysis
CDM financially attractive No barriers , the project is non-additional

CDM financially not attractive CDM faces Barriers = PASS

STEP 4 - Common Practice Analysis (credibility check)

If similar activity can be observed with no essential difference, the project is non-additional

No similar activity or similar activities present but difference in circumstances = PASS

STEP 5 - Impact of CDM registration PROJECT ACTIVITY

If CDM benefits have no impact, the project is non-additional IS ADDITIONAL

ACME – Session 5 – Clean Development Mechanism - 24 / 39

 Validation
Designated Operational Entity (DOE)
 A DOE under the CDM:
 Is either a domestic legal entity or an international organization accredited/designated
by EB
 Validates and subsequently requests EB for registration

 List of accredited and provisional DOEs:

 TUV Industrial Service GmbH TUV SUD GRUPPE (TUV Industrie Service GmbH
TUV)
 Societe Generale de Surveillance Uk Ltd. (SGS)
 Bureau Veritas Quality International Holding S.A. (BVQ1 Holding S.A.)
 Loyds
 TUV Nord
 Det Norske Veritas Certification Ltd. (DNV cert)
Project Developer
 Prepares the Project Design Document (PDD) and submits it to DNA
 Provides or obtains debt or equity finance for project
 Implements the project after registration
 Monitors the project in accordance with approved monitoring schedule
 Delivers CER to purchaser through market or other mechanisms
 Basic contents of PIN/PCN
 Time & location of the project
 Name of Project proponents & their contact details
 Scale, scope, methodology & technology employed
 Crediting period & CHG reduction/ sequestration estimate
 Contribution to sustainable development
 Environmental well being
 Social wellbeing
 Technological well being
 Economical well being
 Specific global and local environmental benefits
 Finance:
 Project cost estimate & breakdown
 Sources of funding – equity, debt, carbon financing etc.
Designated National Authority (DNA)
Helps develop and make aware country level
operational procedures, decides sustainable
development criteria’s, confirms nature of
participation (voluntary) and accesses project’s
contribution towards sustainable development &
biodiversity; issues letters of approval for
validation and registration.