Clean Development Mechanism (CDM)

What is Clean Development Mechanism?

Clean Development Mechanism (CDM) is a mechanism under the Kyoto Protocol that 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.

What services does LRQA offer?

LRQA offers validation and verification of CDM project activities and programme of activities (PoA). 

Validation is the process of independent evaluation of a CDM project activity or PoA by a DOE against the requirements of the CDM rules and requirements, on the basis of a project or a PoA design document. A validation opinion is provided on conclusion of the validation of a proposed CDM project activity or PoA.

Verification is the periodic independent evaluation and ex post determination by a DOE of monitored reductions in anthropogenic emissions by sources of greenhouse gas (GHG) that have occurred as a result of a registered CDM project activity or PoA.

How can LRQA help?

We offer validation of the project's documentation against the requirements of CDM allowing you to register your project. Periodic verifications confirm that your project operations are installed/implemented as planned, that the monitoring systems are in place, are fully functional and are compliant with those described in the monitoring and reporting plan, and that verifiable emission reductions can be expected to be generated.

A periodic verification will determine whether the GHG emissions reduction data is 'free' from misstatements and that sufficient documentary evidence supports this reported data. We also certify that you achieved your GHG emissions reductions as verified, letting the CDM EB issue the CERs which you can then trade.

Who do I approach for LRQA’s services?

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