CDM+projects

The Clean Development Mechanism (CDM) allows you to reduce greenhouse gas emissions in a cost-efficient manner. Your active contribution to sustainable development is awarded with emission credits that can fulfil your own commitments or be traded on the greenhouse gas (GHG) market.

Print this page Save as PDF

Purpose

Established under the Kyoto Protocol, the CDM scheme is an incentive for companies in industrialised countries to invest in eligible emissions reduction projects in developing countries. The Kyoto Protocol requires that all CDM-projects are subjected to validation and verification/certification by a designated operational entity, ie. a third party verifier.

While helping a developing country find ways to reduce their GHG emissions, you are honouring your own reduction commitments as well. The CDM project in which you invest has to be eligible under the Kyoto Protocol, which means it reduces GHG emissions beyond levels achieved in a business-as-usual scenario.

Benefits

The CDM project must reduce GHG emissions consistently over a period of time. Investing companies earn a determined amount of credits for achieved emissions reductions. Credits awarded in the form of certified emission reductions (CER) can be used to fulfil own reduction commitments or be traded on the CDM market.

When properly organised and fulfilling the external validation and verification/certification requirements, CDM projects can earn credits for either a ten year period or for a seven year period with the option of two renewals of seven years each. Participation in the scheme is voluntary.

The CDM scheme provides for a cost-effective implementation of the Kyoto Protocol, since emissions can be reached at the lowest possible cost. Investments in CDM projects benefit both developing and industrialised countries, as well as the environment:

  • Host countries receive assistance in reaching sustainable development.

  • Investor parties receive help to achieve compliance with their emissions reduction commitments.

  • Real, measurable, long-term, and cost-effective benefits that can help reduce the climate change are achieved.

  • Reductions in emissions that are additional to business as usual operations are achieved.

Features

  • Validation of the design of your CDM project. This is a prerequisite for your project to be registered as a CDM project.

  • Verification/certification of the emissions reductions. This verifies the emissions reductions achieved by your project, based on which credits are issued.

The road to certification will give you an overview of the steps you need to follow to receive certified emission credits from your CDM project.

In compliance with UNFCCC (United Nations Framework Convention on Climate Change) regulations and to avoid any integrity issues, we only perform one of the services for each CDM project, ie. either validation or verification/certification.

Accreditation

DNV became UNFCCC-accredited as an operating entity under the Clean Development Mechanism (CDM) in March 2004 to perform independent project validations and verification/certification of emissions reductions.

The accreditation covers the following sectors: energy industries, energy distribution, energy demand, manufacturing industries, chemical industries, construction, transport, agriculture, fugitive emissions, solvent use and waste handling and disposal. Other scopes have been applied for and are under review by the CDM Executive Board.