CDM procedure
How to get paid for CO2 reduction?
CDM for dummies (Clean Development Mechanism): Source: NABC magazine.
CDM is established under the Kyoto Protocol. Investment in cleaner technologies and smart energy generate significant amount of Carbon credits. In Africa, less than 2% of all CDM projects are located. The carbon trading industry is 30 Billion USD in investment capital.
Emission reduction (or prevention) achieved with CDM projects are awarded credits, called Certified Emission Reductions (CER’s). There were 457 Million CER’s worldwide last year.
One CER represents an emission reduction of one ton of CO2 equivalent.
For example: one ton Methane (CH4) = 25 tons of CO2.
CER’s can be traded privately or in the international market (NASDAQ, OMX commodities Europe, the European Climate Exchange (ECX), etc. like banks). Current price = € 13.-
How to use CDM for financing your project in Africa?
Step1: (not mandatory) describe the project idea in a PIN (Project Idea Note), including a well argued estimation of the emission reduction (validated by http://www.nl.sgs.com or TÜV or DNV) plus a letter of support by the government of the country where the project is going to be implemented.
Step2: present the project in a PDD (Project Design Document) which includes the calculation of emission reduction, and present an analysis of environmental and socio-economic impacts of the project. Plus a letter of approval from the government of the country where the project is going to be implemented.
Step3: organize validation of the PDD by an independent organization accredited by the CDM Executive Board of the UNFCC (see before).
Step4: implement the project and provide monitoring reports and request for verification.
Step5: organize verification (see step 3 but not the same organization)
Step6: request the CDM Executive Board to issue CER’s. After that you can sell them. The investor / buyer buys credits that will be generated by the project in the future as well.
Opportunities for CDM projects in Africa: clean energy solutions and energy neutral production solutions, smart factories, smart horticulture and many more.
CDM for dummies (Clean Development Mechanism): Source: NABC magazine.
CDM is established under the Kyoto Protocol. Investment in cleaner technologies and smart energy generate significant amount of Carbon credits. In Africa, less than 2% of all CDM projects are located. The carbon trading industry is 30 Billion USD in investment capital.
Emission reduction (or prevention) achieved with CDM projects are awarded credits, called Certified Emission Reductions (CER’s). There were 457 Million CER’s worldwide last year.
One CER represents an emission reduction of one ton of CO2 equivalent.
For example: one ton Methane (CH4) = 25 tons of CO2.
CER’s can be traded privately or in the international market (NASDAQ, OMX commodities Europe, the European Climate Exchange (ECX), etc. like banks). Current price = € 13.-
How to use CDM for financing your project in Africa?
Step1: (not mandatory) describe the project idea in a PIN (Project Idea Note), including a well argued estimation of the emission reduction (validated by http://www.nl.sgs.com or TÜV or DNV) plus a letter of support by the government of the country where the project is going to be implemented.
Step2: present the project in a PDD (Project Design Document) which includes the calculation of emission reduction, and present an analysis of environmental and socio-economic impacts of the project. Plus a letter of approval from the government of the country where the project is going to be implemented.
Step3: organize validation of the PDD by an independent organization accredited by the CDM Executive Board of the UNFCC (see before).
Step4: implement the project and provide monitoring reports and request for verification.
Step5: organize verification (see step 3 but not the same organization)
Step6: request the CDM Executive Board to issue CER’s. After that you can sell them. The investor / buyer buys credits that will be generated by the project in the future as well.
Opportunities for CDM projects in Africa: clean energy solutions and energy neutral production solutions, smart factories, smart horticulture and many more.
