CDM Project Cycle

Get a glimpse of the 7 steps of the Project Cycle

  1. 1 Project Design Handled by Project Participant
  2. 2 National approval Handled by Designated National Authority
  3. 3 Validation Handled by Designated Operational Entity
  4. 4 Registration Handled by Executive Board
  5. 5 Monitoring Handled by Project Participant
  6. 6 Verification Handled by Designated Operational Entity
  7. 7 CER issuance Handled by Executive Board

Project Design

Handled by Project Participant

Project participant prepares project design document, making use of approved emissions baseline and monitoring methodology.

Project design step in detail

  • Project Design Document (CDM-PDD): The project design document form was developed by the Executive Board on the basis of Appendix B of the CDM modalities and procedures. Project participants shall submit information on their proposed CDM project using the CDM-PDD form.
  • Proposal of a new baseline and/or monitoring methodology: The proposed new baseline methodology shall be submitted by the designated operational entity to the Executive Board for review and approval, prior to validation and submission for registration of the project.
  • Use of an approved methodology: An approved methodology is a methodology previously approved by the Executive Board and made publicly available along with any relevant guidance. When an approved methodology is used, the designated operational entity may proceed with the validation of the CDM project activity and submit the CDM-PDD with a request for registration.
Project Design Document is provided to Validation

National approval

Handled by Designated National Authority

Project participant secures letter of approval from Party.

The Designated National Authority (DNA) of a Party involved in a proposed CDM project activity shall submit a letter indicating the following:

  • That the country has ratified the Kyoto Protocol.
  • That participation is voluntary.
  • And, from host parties, a statement that the proposed CDM project activity contributes to sustainable development (EB 16, Annex 6, paragraph 1).

Validation

Handled by Designated Operational Entity

Project design document is validated by accredited designated operational entity, private third-party certifier.

Validation is the process of independent evaluation of a project activity by a designated operational entity against the requirements of the CDM as set out in CDM modalities and procedures and relevant decisions of the Kyoto Protocol Parties and the CDM Executive Board, on the basis of the project design document.

Project & Design provides Project Design Document
Project Design Document is provided to Registration

Registration

Handled by CDM Executive Board

Valid project submitted by DOE to CDM Executive Board with request for registration.

Registration is the formal acceptance by the Executive Board of a validated project as a CDM project activity. Registration is the prerequisite for the verification, certification and issuance of CERs related to that project activity.

Registration step in detail

  • Completeness check by secretariat
  • Vetting by secretariat
  • Vetting by Executive Board
  • If a Party or three members of Executive Board request review, project undergoes review, otherwise proceeds to registration

Monitoring

Handled by Project Participant

Project participant responsible for monitoring actual emissions according to approved methodology.

Monitoring report & Request for issuance is provided to Verification & Certification

Verification

Handled by Designated Operational Entity

Designated operational entity verifies that emission reductions took place, in the amount claimed, according to approved monitoring plan.

Verification is the independent review and ex post determination by the designated operational entity of the monitored reductions in anthropogenic emissions by sources of greenhouse gases that have occurred as a result of a registered CDM project activity during the verification period.

Certification is the written assurance by the designated operational entity that, during the specified period, the project activity achieved the emission reductions as verified.

Monitoring provides Monitoring report & Request for issuance
Monitoring report & Request for issuance is provided to Issuance of Certified Emission Reductions

CER issuance

Handled by CDM Executive Board

Designated operational entity submits verification report with request for issuance to CDM Executive Board.

CER issuance step in detail

  • Completeness check by secretariat
  • Vetting by secretariat
  • Vetting by Executive Board
  • If a Party or three members of Executive Board request review, issuance request undergoes review, otherwise proceeds to issuance
Verification & Certification provides Monitoring report & Request for issuance