Frequently Asked Questions

 The clean development mechanism (CDM) allows emission-reduction (or emission removal) projects in developing countries to earn certified emission reduction (CER) credits, each equivalent to one tonne of CO2. These CERs can be traded and sold, and used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.

The mechanism stimulates sustainable development and emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction targets.

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 to what would have occurred without the project. The mechanism is overseen by the CDM Executive Board (EB), answerable ultimately to the countries that have ratified the Kyoto Protocol.

In order to be considered for registration, a project must first be approved by the Designated National Authorities (DNA).

The mechanism is seen by many as a trailblazer. It is the first global, environmental investment and credit scheme of its kind, providing a standardized emissions offset instrument, CERs.

 The UNFCCC secretariat is charged with the responsibility of supporting the Conference of the Parties and the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol and their associated bodies. In the case of the clean development mechanism (CDM), the secretariat solely supports the CDM Executive Board.

In light of the above and as an impartial organization, the UNFCCC secretariat is not in a position to provide any training or any specific advice on where to get one. It is therefore recommended to turn to the relevant DNA to enquire about their initiatives. You will find their contact details here

You may also want to seek more information by visiting the CDM Bazaar website. This free web portal enables CDM players to interact and exchange tips, contact details, etc.

 If you are interested in starting a CDM project, first become familiar with the objectives of the Kyoto Protocol, the background of the CDM, the modalities and procedures of the CDM , as well as the project activity cycle.

Information on small-scale projects more >>
Information on afforestation/reforestation projects more >>

 In order to take part in the CDM, a country must have a designated national authority (DNA). Contact details of DNAs are available here.

 The UNFCCC secretariat is mandated to support the Conference of the Parties and the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol and their associated bodies. In the case of the clean development mechanism (CDM), the secretariat is responsible for supporting the work of the CDM Executive Board, the decision-making authority on all CDM project activities.

The UNFCCC secretariat does not provide individual project developers assistance in:
(a) pre-appraising project ideas/proposals;
(b) sourcing financing or expert help;
(c) preparing required documents.

More information, and even advice, is available through the CDM Bazaar website, a free web portal where CDM stakeholders, buyers, sellers and service providers share information and contact details.

 There are three types of small-scale project activities. Decision 1/CMP.2 revised the definitions for small-scale project activities referred to in paragraph 6 (c) of decision 17/CP.7, and Annex II of Decision 4/CMP.1 as follows:

(a) Type I: renewable energy project activities with a maximum output capacity of 15 megawatts (or an appropriate equivalent);

(b) Type II: project activities relating to improvements in energy efficiency which reduce energy consumption, on the supply and/or demand side, by up to 60 gigawatt hours per year (or an appropriate equivalent);

(c) Type III: other project activities that result in emission reductions of less than or equal to 60 kilotonnes of carbon dioxide equivalent annually.

Any CDM project activity not possessing the abovementioned characteristics is considered a large-scale CDM project activity.

 All CDM forms, including the blank PDD form, can be found in the reference/documentation section.

 For communications which are not in response to a call for input, please check the modalities and procedures for direct communication with stakeholders before sending them.

Communications on policy issues initiated by AEs/DOEs have to be sent using the F-CDM-RtB-DOE form through the 'New DOE-EB Interface' under Operational Entities Extranet.

Communications on policy issues initiated by DNAs should be sent using a form via email to the Moderator DNA account, until a dedicated interface is put in place on the DNA extranet.

Communications on policy issues initiated by project participants and other stakeholders should be sent using a form via e-mail to cdm-info@unfccc.int or by fax at +49 228 815 1999, until a dedicated interface is put in place on the UNFCCC CDM website.

Letters submitted from stakeholders are available here.

Stakeholders who would like to send query on an approved methodology, request for revision of an approved methodology, and proposal for a new methodology, should refer to the Procedures available here or to the methodologies section of this FAQs page.

 Observers at the CDM Executive Board meeting are either representatives of Parties to the Convention or representatives of admitted NGO observer organizations ( Rule 27 of the Rules of Procedure of the CDM EB.) Pursuant to this rule, nominations of representatives must be communicated through the designated contact point for climate change of the Party or the admitted observer organizations.

In general, the deadline for registration is three weeks before the date of the meeting. In order to avoid late requests, we would recommend that you check the up-coming date in the report of previous meeting of the CDM Executive Board.

Project participants and DOEs interested in the review process of specific project activities shall be given the opportunity to attend the Executive Board meeting at which the request for review shall be considered.

If a request for review for a proposed CDM project activity is considered for the first time by the Executive Board, stakeholders may register as observers until two weeks before the meeting. For any meeting thereafter, when this proposed CDM project activity is on the agenda, the normal three week deadline has to be observed.

Stakeholders meeting the above requirements and deadlines are registered as observers subject to availability of space on a first come first serve basis.

 A project search facility is available on the UNFCCC CDM website. For additional filters, you may want to chose the “advanced search” option. All information contained in the result table is publicly available.

 The Glossary of CDM Terms can be found here.

 The secretariat of the UNFCCC has launched a new RSS feed service for CDM News and CDM project related information. Through RSS, users can receive updates on the specific information they need, as it becomes available. To learn more, and to subscribe, go to the CDM RSS page.

The RSS feed service now replaces CDM News email distributions. Switching to RSS (1) allows CDM stakeholders to receive information tailored to their specific needs or interests, (2) quickens the delivery of information, (3) reduces the volume of email traffic, and thus the number of possible unwanted emails.

If you experience technical problems using this RSS service, please contact cdm-multimedia@unfccc.int.

 RSS (also known as web feed, XML feed, syndicated content) stands for really simple syndication. When you subscribe to a feed, you receive notices of updated content on the website/webpage to which you have subscribed.

RSS feeds can be used to deliver all types of digital content, such as text, pictures, video or audio. Feeds that deliver audio content (usually in MP3 format) are called podcasts.

More CDM website RSS feeds are planned in the coming months, such as:
- CDM Audio File service
- CDM Governance (meetings of the CDM Executive Board, its panels and working groups)
- CDM Methodologies

If you experience technical problems using this RSS service, please contact us at cdm-multimedia@unfccc.int

 If you have forgotten your username and/or password, use the login/password recovery function.

 A methodology is a standard procedure to calculate emission reductions of a typical CDM project, and also to monitor the emissions of that project. The methodology used depends on the type of project. For example for an energy efficiency project, a renewable energy project or a transportation project, the methodology to apply will be different. There are different categories of projects for which different categories of methodologies are available.

Project participants may use an existing methodology. Lists of existing methodologies approved by the CDM Executive Board are available here under "Standards". If no methodology is available, the project participant can submit to the UNFCCC a proposal for a new methodology. The proposed methodology will be evaluated by the Methodologies Panel of the CDM Executive Board, and finally approved or rejected by the Board. If the methodology is rejected, the project participant can submit it again, after taking into account the comments made by the Methodologies Panel.

  The baseline is the scenario that represents the GHG emissions that would occur in the absence of the proposed CDM project activity. The project participants can either use the approved methodologies or propose a new methodology for determining the baseline scenario. For more details on baseline, please see the Glossary of CDM Terms.

  Emission reductions under the Clean Development Mechanism must be real, measurable, verifiable and additional to what would have taken place without the project. For a proposed CDM project activity, it must be established that the project would not occur under the baseline scenario. Consequently, the amount of GHG emissions from the proposed CDM project activity should be lower than that from the baseline scenario. The additionality of the CDM projects may be demonstrated by the Tool for the demonstration and assessment of additionality.

  The project boundary defines the area within which emissions reductions occur. Emissions reductions must occur on the project site or result from the project. The project boundary shall encompass all GHG emissions under the control of the project participants that are significant and reasonably attributable to the CDM project activity. Please refer to paragraph 52 and appendix C, paragraphs (a) (iii) and (b) (vi) of the CDM modalities and procedures, in accordance with provisions of Appendix B for the relevant project category.

  Leakage refers to any GHG emissions that occur outside the project boundary, as a result of the project. For more details on leakage, please see the Glossary of CDM Terms.

  To submit a new large scale methodology, please read this information as well as the procedures for the submission and consideration of a proposed new large scale methodology.

For afforestation/reforestation methodologies, please see this information and the procedures for the submission and consideration of a proposed new methodology for afforestation and reforestation project activities under the CDM.

Regarding small-scale methodologies, please refer to the procedures for the submission and consideration of a proposed new small scale methodology.

Project participants willing to submit a new small-scale afforestation and reforestation project activity type or revisions to a methodology shall make a request in writing to the Board providing information about the technology/activity and proposals on how a simplified baseline and monitoring methodology would be applied to this type.

  In accordance with the Procedure for the submission and consideration of queries regarding the application of approved methodologies by DOEs to the Meth Panel, which is applicable to approved large scale and large scale afforestation and reforestation (A/R) CDM methodologies, a Designated Operational Entity may submit queries regarding the applicability of approved methodologies.

Queries by DOEs regarding the applicability of approved methodologies and the related clarifications provided by the Board are integrated in the historical record of the methodology concerned and published on the UNFCCC CDM website. All queries and clarifications on large methodologies are available here. For large scale A/R methodologies, please click here.

For queries regarding small scale or small scale A/R methodologies , please follow the procedures for submission and consideration of request for clarification on the application of approved small scale methodologies. All submitted queries and related clarifications for small scale methodologies are available here For small scale A/R methodologies, please click here.

  In accordance with the Submission and consideration of queries regarding the application of approved methodologies and methodological tools by Designated Operational Entities to the Meth Panel a Designated Operational Entity may submit queries regarding the applicability of approved tools.

Queries by DOEs regarding the applicability of approved tools and the clarifications provided by the Board on these queries are being made publicly available on the CDM website and in the historical record of the methodology concerned. For queries on approved general tools, please visit this page.
For queries on approved A/R methodological tools, please click here

Only DOEs can submit a new request. If you are a DOE, please log in .

  For requesting revision of a large scale methodology, please follow the Procedure for the submission and consideration of requests for revision of AMs and tools for large scale CDM project activities. All submitted requests are published here.

For revision requests related to large scale A/R methodologies, please follow the Procedure for the submission and consideration of requests for revision of AMs and tools for A/R CDM project activities. The submitted requests are available here.

For revision of small scale and small scale A/R methodologies, please follow the Procedures for revision of an approved small scale methodology by the Executive Board. All submissions on small scale methodologies may be viewed here. For viewing the submissions on small scale A/R methodologies, please click here.

  A Designated Operational Entity under the CDM is either a domestic legal entity or an international organization accredited and designated, on a provisional basis until confirmed by the CMP, by the Executive Board (EB).

It has two key functions:

• It validates and subsequently requests registration of a proposed CDM project activity (see section Project Cycle - how to for more details).
• It verifies emission reduction of a registered CDM project activity, certifies as appropriate and requests the Board to issue Certified Emission Reductions accordingly. (see section Project Cycle - how to for more details).

Further information on DOEs is available on this page

  The accredited and provisionally designated operational entities can be found here

  Any legal entity (either a domestic legal entity or an international organization) may apply for accreditation/designation as a Designated Operational Entity (DOE). A DOE shall be a legal entity under applicable national and/or international law so that it can function legally, enter into contracts, make decisions independently and may be sued.
For further information please check section III of the CDM Accreditation Standard for Operational Entities.

To become a DOE an organization has to:

• Ensure that it complies with the requirements of the CDM Accreditation Standard
• Pay the application fee
• Submit the required application forms and supporting documentation.
• Be assessed by the CDM Assessment Team, by the CDM Accreditation Panel and by the CDM Executive Board.

For further information please check the CDM Accreditation Procedure and visit our DOE page

 The price of CERs is negotiated between buyers and sellers. The secretariat has no role in the negotiation of price, and as such has no information on price.

However, if your question relates to the CDM Registry administered by the secretariat, please see https://cdm.unfccc.int/Registry/index.html.

 The starting date of a CDM project activity is the earliest date at which either the implementation or construction or real action of a programme activity begins.
For further information, please check the Glossary of CDM terms.

 For all registration requests submitted on or after 11 December 2010 (including PoA), it is the date on which a complete request for registration has been submitted. This is considered to be the day by which both the registration request and the registration fee have been received by the secretariat. In cases when no fee is required, it is the day on which the registration request was submitted. However, the registration request will only be considered complete when it successfully passes the completeness check and the information and reporting check described in the latest procedure for requests for registration of proposed CDM project activities.
In cases where a registration request is considered incomplete at one of the checks, it has to be re-submitted with revised documentation. The date on which a registration request is re-submitted and successfully passes the checking stages will then be considered the effective date of registration.

For all registration requests submitted before 11 December 2010, it is the day following the period during which a review may be requested. (Please refer to the previous version of the registration procedures, EB 54, Annex 28.)

For all registration requests which were under review, and for which the review resulted in the conclusion to register, it is the day on which the latest revisions to the validation report and/or supporting documentation were submitted. (Please refer to the procedure for review of requests for registration.)

 Once the project has been submitted for registration by the DOE, the secretariat will complete within 7 days a completeness check to determine whether the submission is complete.If the submission meets the requirements of the completeness check, then the secretariat will conduct within 23 days an information and reporting check.

However, if the request for registration does not meet the requirements of the completeness and information and reporting checks, then upon submission of the revised documentation it shall be treated as a new request for registration.

Following the publication of the request for registration on the UNFCCC CDM website, the project activity will be automatically registered after 28 days unless a Party involved in the project activity or at least three members of the Executive Board request a review of the proposed CDM project activity.

The review by the Executive Board shall be made in accordance with Procedure for review of requests for registration.

For more information, please refer to the Procedure for requests for registration, which applies to both small and large-scale projects.

 Project participants pay a registration fee to cover the administrative costs of registering their projects and an issuance fee to cover the cost of the issuing certified emission reductions (CERs) generated by the project activity.

Please see the guidelines on the registration fee schedule for proposed project activities: the calculation of the registration fee is based on the validated figure submitted by a DOE (i.e. the estimation of the annual emission reductions - on the basis of a PDD). The registration fee is usually paid by the project participants, through the DOE, at the time of the request for registration (once only).

 The share of proceeds paid by project participants is calculated in a similar way as the registration fee (see response above), but is calculated on the verified figure (i.e the actual amount of emission reductions that have been monitored over a period).

The registration fee is deductible from the SOP-Admin, i.e. the registration fee could be considered as a sort of administrative advance payment. This means that, following the first monitoring period after the implementation of the project, should the paid registration fee be superior to the SOP-Admin, it would not only offset this first SOP-Admin payment, but the positive balance would be applied to the second monitoring period, and so on.

The SOP-Admin is usually paid at the time of each request for issuance of certified emission reductions.

For the exemption of fees and reimbursement rules, please refer to the relevant guidelines.

 The submission of the "prior consideration of the CDM" form is an initial notification of the intention to seek CDM status.

If a project has already started before
• a PDD has been published for public comments
  or
• a new methodology or revision of methodology related to the project has been proposed,

a notification of CDM prior consideration is required to demonstrate that the benefits of the CDM were a decisive factor for taking up the project. This notification has to be sent to the host country’s DNA and the UNFCCC secretariat within 6 months of the project start date, following the “guidelines on the demonstration and assessment of prior consideration of the CDM”, available in this section of the website.

The relevant Form is available here.

Notifications are published on the UNFCCC CDM website.

Please see also “What is the start date of my project?”

 To check the status of your project once it has been submitted for registration by the DOE, please see this page.

For projects which have successfully passed the completeness check and the information and reporting check or which are already registered, please click here

 Yes. Parties have decided that there will be a second commitment period under the Kyoto Protocol, starting on 1 January 2013 and ending on 31 December 2017 or 31 December 2020. As a mechanism under the Kyoto Protocol, the CDM will continue through that second commitment period.

 Emission targets for the second commitment period are currently being negotiated under the Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG-KP).

 CERs may be used by Annex I Parties for compliance with their emission targets for the first commitment period as long as they are valid for the first commitment period, which in practice means that they must be issued for emission reductions or removals taking place up to the end of 2012. In this context, the date of verification of emission reductions or removals may mean that the corresponding CERs are actually issued after 1 January 2013. However, the serial numbers of these CERs will indicate that they were issued for reductions or removals that took place during the first commitment period.

 The Kyoto Protocol allows CERs from a commitment period, as with other types of units, to be traded into or out of a Party's national registry until the end of the 'true-up period' associated with that commitment period. This true-up period is formally defined as extending to 100 days after the date agreed by the Parties for completing the reviews of Annex I Parties' emission inventories for the 2012 calendar year. On this basis, the true-up period associated with the first commitment period is expected to extend until mid-2015. CERs from the first commitment period may not be traded after this date unless they are first 'carried over' to the second commitment period.

Most non-government buyers and sellers of CERs will, however, fall under the rules for domestic or regional emissions trading systems, such as the EU emissions trading system, which may impose other deadlines for using CERs from the first commitment period. These market participants are likely to need to confirm the deadlines for surrendering CERs against entity-level targets and/or exchanging CERs from the first commitment period for units issued by such trading systems, as applicable, under the rules of such systems.

 Annex I Parties may decide to 'carry over' CERs from the first commitment period for use in complying with their emission targets for the second commitment period. Such carry-over transactions, as initiated by national registries, result in the serial numbers of the CERs being updated.

Each Annex I Party is limited in the number of CERs that it may carry over from the first commitment period. This limit is set at 2.5% of the Party's original allocation of assigned amount for the first commitment period. Each Party may determine which CERs in its national registry are to be carried over. It is not possible to carry over tCERs or lCERs.

There are no provisions allowing the carryover of CERs held in accounts in the CDM registry.