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.

 A programme of activities (PoA) under the CDM is the coordinated implementation of a policy, measure or goal that reduces emissions.

Under a PoA, emission reductions achieved by many individual activities (known as component project activities or CPAs) can be considered in aggregate, without requiring each CPA to undergo individualized registration and issuance processes. This reduces transaction costs and makes the CDM more attractive and accessible, particularly to least developed countries that have not historically benefited from the CDM. For further information, please see our PoA page

 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. 

 In an effort to help under-represented regions benefit from the CDM, the UNFCCC secretariat has set up a help desk for projects located in Africa, least developed countries (LDCs), small island developing states (SIDS) and countries with 10 or fewer registered CDM projects as of 31 December 2010. The help desk is open to any query regarding CDM projects or programmes of activities (PoA) from targeted countries, so long as the project is in the process of validation or verification. Further information is available here
An overview of all initiatives to support the CDM in under-represented regions can be found here

 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 “Procedure: Direct communication with stakeholders” before sending them.

Stakeholders may initiate a communication directed to the CDM Executive Board or the secretariat, on the understanding, application and development of CDM rules and the implementation of project activities and programmes of activities (PoAs), e.g., technical or operational explanation, suggestions/ proposals for new regulations, using the “Stakeholder communication form” (CDM-COM-FORM), available under the CDM webpage, Rules and Reference section, under the Forms sub-section, here. 

The completed form (CDM-COM-FORM) and any supplemental documents shall be submitted electronically to cdm-info@unfccc.int, or via fax to +49-228-815-1999 or via post to: Sustainable Development Mechanism (SDM) Programme, UNFCCC secretariat, P.O. Box 260124, D-53153 Bonn, Germany.

Communications directed to the CDM Executive Board (previously known as ‘Letter to the Board’) submitted from stakeholders are available here.

Stakeholders who would like to send a 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.

...Some reply...

 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.

+ How can I request observer status to attend a CDM Executive Board meeting?

 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 procedure for the development, revision and clarification of baseline and monitoring methodologies and methodological tools. 

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 

  In accordance with the procedure for the development, revision and clarification of baseline and monitoring methodologies and methodological tools, please fill the CDM-AMC-Form and email to sdm-ssu-methworkflows@unfccc.int.

Further information is available here

All submitted queries and related clarifications can be accessed through our methodologies page.

 To request the revision of an approved CDM methodology or tool, please read this information and the procedure for development, revision and clarification of baseline and monitoring methodologies and methodological tools.

All revision requests may be accessed through the Methodologies page.

 In accordance with the Standard for the application of the global warming potentials to clean development mechanism project activities and programme of activities for the second commitment period of the Kyoto Protocol and the underlying CMP Decision, for all emission reductions achieved starting 1 January 2013, the following global warming potentials (expressed in tCO2e/t) should be used:

• Carbon dioxide (CO2): 1
• Methane (CH4): 25
• Nitrous oxide  (N2O): 298
• Sulphur hexafluoride  (SF6): 22,800
• HFC-23 (CHF3): 14,800 
• PFC-14: (CF4): 7,390
• Other PFC and HFC gases: please refer to the table 2.14 of the errata to the contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (available here). The values found in the column "global warming potentials provided for given time horizon" using the 100-year time horizon apply.

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.

 Validation is the process of independent evaluation of a CDM project activity (or programme of activities) by a Designated Operational Entity (DOE) against the CDM rules and requirements. It is a prerequisite for submitting a request for registration. Proposed CDM projects are validated in line with CDM rules and regulations based on the information contained in a project design document (PDD) which, at the beginning of the validation process, has to be published on the UNFCCC CDM website inviting comments from the general public. All PDDs open for public comments are available here.

 The length of the validation process differs from project to project depending on the individual circumstances of the project. It starts with the publication of a project design document (PDD) which has to be open for public comment for 30 calendar days (or 45 days in the case of large scale afforestation and reforestation projects). The received comments as well as all project-related details have to be thoroughly assessed by the validating designated operational entity (DOE) and reported in a detailed validation report (VR). This process, which is essential for safeguarding the high quality and environmental integrity of the CDM, can take from 9 months to 2 years and sometimes longer (in exceptional cases). During the validation process, corrective actions by the project participant may be required by the validating designated operational entity (DOE), in order to meet the high standards of the CDM.

 Once the validation process is completed, a designated operational entity (DOE) can submit an official registration request. The shortest possible time for going through the registration process would be 58 days. However, it might take longer, especially in cases where a review is being requested.

After a registration request is submitted and the registration fee is paid, the secretariat endeavours to begin the registration process as soon as possible. The first step is the completeness check, scheduled for 7 days, followed by the information and reporting check, scheduled for 23 days. The relevant checklists may be viewed here

If a registration request does not meet the checking-requirements, it is considered incomplete and the responsible DOE and project participants are notified accordingly. In this case, the registration request may be re-submitted with revised documentation, and will then be treated as a new submission.

Only after the successful completion of both checks is the registration request published on the CDM website and presented to the CDM Executive Board. Parties involved in the project or members of the CDM Executive Board may request a review of any project within the first 28 days of publication. If a Party involved or at least three members of the CDM Executive Board do so, the registration request will go under review. Otherwise, the secretariat will take action to register the project. (please see also 'What is the registration date of my project')

When it is determined that a registration request will go under review, the secretariat informs the DOE and the project participants accordingly, who will then have to respond to the issues identified in the requests for review within 28 days. After that, the actual assessment by the secretariat and the Registration and Issuance Team (RIT), takes place and should be finished within 14 days. If the assessment by both the secretariat and the RIT is to register the project and no member of the Executive Board objects to this within 20 days from receipt of the assessment reports, registration action can be taken. Hence, the shortest possible period of time to get registered after a review is requested is 62 days.

If the secretariat and the RIT differ in their assessment decision, or if a member of the CDM Executive Board objects to the decision, the process will take longer, depending on the schedule of the secretariat and the Executive Board meetings. Further information is available in the CDM Project Cycle Procedure.

  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 CDM Project Cycle Procedure.

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.

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."

 In the context of a CDM project activity or programme of activities (PoA), it is the earliest date at which either the implementation or construction or real action of a CDM project activity or PoA begins. Further clarification is given in paragraph 67 of the forty-first meeting report of the CDM Executive Board

 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, as specified in the CDM Project Cycle Procedure.

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

 All CERs issued under the CDM have to indicate the corresponding commitment period for which the related emission reductions are verified. In order to clearly differentiate emission reductions monitored for the period up to 31 December 2012 from those monitored for the period starting thereafter, project participants may adjust monitoring periods to end on 31 December 2012 and start on 1 January 2013 respectively. However, this approach is only possible if exact measurements can be carried out on those dates.

Alternatively, it is possible to cover this transitional period in one monitoring period. In this case, all monitored emission reductions for this period have to be allocated proportionally to the duration of the period up to 31 December 2012 and from 1 January 2013 onwards. If annual caps are being applied in the calculation of emission reductions, these annual caps have to be pro-rated to the period before and after 31 December 2012.

For detailed information, please refer to paragraph 71 of the EB 62 report.

On this basis, the relevant form has been amended to accommodate new fields for indicating emissions reductions or removals achieved in separate periods: up to 31 December 2012 and from 1 January 2013 onwards.

The monitoring report form is available here:

The guideline for completing the monitoring report form is available here:

The CER issuance forms are available here:

Please see also the "Post 2012" section of this page

 According to the "Clean development mechanism project cycle procedure" , the project participants of a registered CDM project activity or the coordinating/managing entity (CME) of a registered CDM programme of activities (PoA) shall provide an update of the status of its implementation at the indicated timing and frequency unless a DOE has published a monitoring report for the project activity or PoA.

Also, according to the same procedure, the designated operational entity (DOE) shall provide an update of the status of verification at the indicated timing and frequency after publication of the corresponding monitoring report unless the DOE has submitted a request for issuance.

The dedicated interface referred to in the above mentioned paragraphs is currently under development. Until further notice, project participants, CMEs and DOEs are requested to provide an update of the status by sending an e-mail to cdmregistration@unfccc.int with the subject "Update of status of implementation of registered PA/PoA" or "Update of status of verification", clearly indicating the project activity/PoA number, title and the status in accordance with the relevant paragraph of the above-mentioned procedure.

 

 According to the "Clean development mechanism project standard , the project participants of a registered CDM project activity or the coordinating/managing entity of a registered CDM programme of activities (PoA), shall notify the secretariat of a change to the start date of the crediting period of the CDM project activity or PoA, if the change meets the condition set out in the same paragraph. In this case, the notification shall be submitted by email to cdmregistration@unfccc.int, including the following information:

• a) The subject line of the email shall read 'Notification - change of start date of crediting period';
• b) The body of the email shall include:
  • i. The project activity or PoA title and number;
  • ii. The current and the new start date of the crediting period; and
  • iii. The name of the designated focal point who is submitting the notification.

 As of 1 February 2013, designated operational entities (DOEs) shall submit registration and issuance requests, requests for deviation from an approved methodology and requests for approval of changes to registered CDM projects under the CDM Project Cycle Procedure.

At certain stages of the assessment processes as described in this document, DOEs, project participants and/or coordinating/managing entities (CMEs) for programmes of activities (PoAs) may request, through email, a telephone call appointment from the secretariat in order to clarify issues identified during the relevant assessment stage.

Within three days of receipt of the request, the secretariat will acknowledge receipt and propose a date and time for a telephone appointment that can take place at a later stage. Only one call is permitted for each submission as these consultations are meant to clarify rather than provide solutions.

Requests for telephone calls under the Project Cycle Procedure have to originate either from the contracted DOE or the registered focal point for scope (c) as stated in the modalities of communication (MoC). All such requests MUST be sent to cdm-info@unfccc.intwith the following subject line:

Request for Telephone call - Direct Communication - Project No....

 Detailed information on the permitted changes and the approval process is available in the respective section of the CDM Project Cycle Procedure the CDM project standard

The below provides practical guidance:

Process / Format

• Project participants (PPs) and coordinating/managing entities (CMEs) shall submit a request for post-registration changes (PRC) through a designated operational entity (DOE) together with the revised version of the project design document (PDD), or in the case of a programme of activities (PoA), of the PoA design document (PoA-DD), the generic component project activity design document (CPA-DD) and the specific CPA-DD forms.
• Since 01 May 2012, all documents to be submitted with the requests for PRC, including PRC requests for projects that are registered under the previous regulatory framework (i.e., the validation and verification manual track or “VVM track”), are required to use the new forms under the new regulatory framework (i.e., the validation and verification standard track or “VVS track”). The old information in the PDD, or PoA-DD/generic CPA-DD/specific CPA-DD, registered under the VVM track shall be transferred to the new forms under the VVS track and the DOE shall include a statement in the assessment opinion for the PRC request that the material included in the new form(s) under the VVS track is materially the same as the information in the registered PDD or PoA-DD/generic CPA-DD/specific CPA-DD under the VVM track.
• In submitting the PRC request, two versions of the required documents shall be uploaded:
                        (a) the final version of the revised PDD, or PoA-DD/generic CPA-DD/specific CPA-DD, (using the VVS form), and
                        (b) another version of the same documents highlighting the proposed changes, i.e., the “track-changes” version.

  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. 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). Further details are available in appendix 1 of the project cycle procedure

  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 appendix 1 of the project cycle procedure

 The UNFCCC secretariat is an international organization. Please note that it is not a company and does not have a company ID.

 Please always pay in US Dollars. All transfer charges are to be borne by the payee to ensure the full invoiced amount is received by UNFCCC secretariat. Please instruct your bank accordingly.

 Payment is due upon receipt of the submission confirmation email which includes the amount to be paid. Any transfer charges incurred during the payment of the fee shall be borne by the project participants.

 Please contact your DOE for the UNFCCC bank details. If you are a DOE, please click on the following secure link and log in to see the bank details. https://cdm.unfccc.int/DOE/BankingInfo.html

 The UNFCCC secretariat is registered with the German tax office under the reference number S 7495 - 22010000.

 No, this is not required, as the UNFCCC secretariat is tax exempt.

 No, the UNFCCC does not have a Tax residence certificate. If you require further information regarding the secretariat's tax exempt status, please contact us at cdm-info@unfccc.int

 This section summarizes the rules agreed at the United Nations climate change conference in Doha in December 2012 for the operation of the mechanisms in relation to the second commitment period under the Kyoto Protocol, which runs from 1 January 2013 to 31 December 2020 inclusive. These rules do not affect the operation of the mechanisms in relation to the first commitment period (e.g. the issuance, transfer, acquisition, and use of units valid for the first commitment period, including in the true-up period), which remains unchanged.

The CDM:
• Non-Annex I Parties may continue to participate in existing CDM projects and may also participate in new CDM projects registered from 1 January 2013 onward.
• Annex I Parties (including those without emission targets in the second commitment period) may participate in existing and new CDM projects and may receive CERs forwarded from the CDM registry to accounts in their national registry that are issued in respect of emission reductions and removals achieved by CDM projects in the second commitment period.
• Please refer to the section below ('emissions trading between Annex I Parties') for rules governing transfers and acquisitions of CERs between Annex I Parties.
  
  JI:
• Annex I Parties with emission targets in the second commitment period may continue to host existing JI projects and may also host new JI projects registered from 1 January 2013 onward. The emission reductions and removals achieved by such projects in the second commitment period may be verified, and ERUs valid for the second commitment period may be converted from the host Party's AAUs/RMUs for the second commitment period after these are issued. Parties agreed in Doha to consider expediting the issuance of AAUs for the second commitment period.
• The rules regarding the commitment period reserve (as they apply to units valid for the second commitment period), which would normally apply to transfers of ERUs under track 1 JI, will not apply until the transferring Party calculates and records its assigned amount for the second commitment period.
• Please refer to the section below ('emissions trading between Annex I Parties') for rules governing transfers and acquisitions of ERUs between Annex I Parties.

• Emissions trading between Annex I Parties:

• Annex I Parties with emission targets in the first and second commitment periods may transfer and acquire Kyoto units (e.g. AAUs, CERs, ERUs, RMUs) valid for the second commitment period as of 1 January 2013, unless and until they are found ineligible in accordance with established procedure (paragraph 3(b) of the annex to decision 11/CMP.1).
• Annex I Parties with emission targets in the second commitment period but not in the first commitment period may transfer and acquire Kyoto units valid for the second commitment period only after they are found to be eligible in accordance with established procedure (paragraph 3(a) of the annex to decision 11/CMP.1). Parties agreed in Doha to consider expediting the establishment of their eligibility.
• Annex I Parties with emission targets in the first commitment period but not in the second commitment period may not transfer or acquire Kyoto units valid for the second commitment period, although, as noted above, they may continue to receive CERs valid for the second commitment period forwarded from the CDM registry to accounts in their national registry.
• The rules regarding the commitment period reserve (as they apply to units valid for the second commitment period) will not apply until the transferring Party calculates and records its assigned amount for the second commitment period.

 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. CERs are valid for the first commitment period if they are issued for emission reductions or removals taking place in the first commitment period, regardless of their actual date of issuance. The validity of a CER can be determined by looking at its serial number.

 

 The Kyoto Protocol rules allow CERs valid for the first commitment period, as with other types of units, to be traded into or out of accounts in a Party's national registry until the end of the 'true-up period' associated with that commitment period. This applies to all Annex I Parties with emission targets for the first commitment period, whether or not they accept emission targets for the second commitment period. This true-up period is 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 18 November 2015. CERs valid for the first commitment period may not be traded after this date unless they are first 'carried over' to the second commitment period, at which point they become valid for 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 valid for 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 valid for 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 valid for the first commitment period into 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 carry-over of CERs held in accounts in the CDM registry.

 The CDM Executive Board, at its 108^th meeting (1-3 December, 9-11 December and 14 December 2020), agreed on temporary measures to apply to CDM activities generating emission reductions after 2020, as described in paragraphs 6, 7, 8 and 9 of the 108^th Board meeting report. These measures will be applied until the CMP provides needed guidance at its next meeting in Glasgow in November 2021. At the request by the Board at its 108^th meeting, the secretariat is preparing a document to clarify the application of the temporary measures for consideration by the Board at its 109^th meeting (1-3 March and 9-11 March 2021).

 The CDM Executive Board, at its 109^th meeting, adopted clarification on the application of the temporary measures for the operations of the CDM after the second commitment period of the Kyoto Protocol pending CMP guidance at CMP 16 referred to in the EB 108 report, paragraphs 7 and 8, as contained in annex 1 to the meeting report.

The true up period is the length of time following a commitment period in which Annex I Parties must finalize the fulfillment of their emissions targets for that commitment period. The end of the true up period is their deadline for doing so.

The true up period for CP1 (2008-2012) is expected to end on 18 November 2015. This date is calculated as follows:

- Decision 27/CMP.1, annex, section XIII, provides that the true up period ends on the hundredth day after the date set by Parties to the Kyoto Protocol for the completion of the expert review process for the last year of the commitment period (i.e. 2012);
- Decision 3/CMP.10, paragraph 1, sets 10 August 2015 as the date for the completion of the expert review process for the last year of the commitment period (i.e. 2012);
- The hundredth day after 10 August 2015 is 18 November 2015.

The end of the CP1 true up period affects some transactions involving CP1 CERs (i.e. CERs corresponding to emission reductions or removals achieved on or before 31 December 2012). These include:

- Transfers of CP1 CERs from the CDM registry to national registries (i.e. forwarding);
- Transfers of CP1 CERs between national registries (i.e. trading);
- Voluntary cancellations of CP1 CERs in national registries;
- Retirements of CP1 CERs in national registries.

The end of the CP1 true up period does not affect most other CDM activities, such as:

- Registrations of new projects;
- Issuances of CP1 CERs (although the CDM Executive Board may set a deadline for receiving requests for issuance);
- Transfers of CP1 CERs between accounts in the CDM registry;
- Voluntary cancellations of CP1 CERs in the CDM registry;
- Any holdings of, or transactions involving, CP2 CERs (i.e. CERs corresponding to emission reductions or removals achieved on or after 1 January 2013, or those carried over from CP1).

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

CP1 CERs that are held in Annex I Party registries, are not retired (or cancelled for any other purpose), and are not carried over, will be automatically cancelled on a date to be determined after the end of this true up period.

CP1 CERs that are held in the CDM registry are not subject to the automatic cancellation procedure that applies to CERs that are held in Annex I Party registries. They may continue to be held in the CDM registry, transferred within the CDM registry, and voluntarily cancelled in the CDM registry.

Decision 27/CMP.1, annex, section XIII, provides that the true up period ends on the hundredth day after the date set by Parties to the Kyoto Protocol for the completion of the expert review process for the last year of the commitment period. The CMP would need to set the date for the completion of the expert review process for the last year of the second commitment period (i.e. 2020), but has not done so yet.