Frequently Asked Questions

CARBON CREDITS GROUP Provides greenhouse gas measurement, Management and offsetting services to help individuals and organizations reduce their contribution to climate change.
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CARBON CREDITS GROUP's expert staff works with organizations to measure, manage and mitigate your effects on climate change. There are many advantages for companies who seek to quantify their corporate emissions. These benefits includes:
  • Discovery of inefficient processes
  • Identify opportunities to save money by reducing overall GHG emissions
  • Allow you to take responsibility for emissions that cannot be reduced
  • Build leadership in the marketplace
  • Increased corporate social responsibility
  • Attraction and retention of employees
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Greenhouse Gases(GHG's) were so named because they have the same effect on the earth that glass on the outside of a greenhouse has on its interior.GHGS allow the sun's rays to pass through but trap in heat that sustains life on our planet.This process is known as the "greenhouse effect". Without that gases "" primarily water vapour, carbon dioxide and nitrous oxide __ the earth would be too cold for most creatures to survive. Greenhouse gases(GHGS) exit within the atmosphere both naturally and as a result of anthropogenic(human) processes. The primary, man-made ghgs includes:
  • Carbon dioxide
  • Methane
  • Nitrous oxide
  • Sulphur hexafluoride
  • Hydrofluorocarbons
  • Perfluorocarbons
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As the saying goes; “you can’t monitor what you don’t measure.” The first step in managing ghg emissions is to conduct a GHG emissions assessment on the activities that produce emissions. Each of the GHGS listed above are converted into carbon dioxide equivalents, or CO2E for measurement purposes. Each of the 6 gases have a different GHG intensity, I.E. Its ability to impact global warming. Reducing your overall climate impact not only benefits air quality, but managing your emissions can also help you find more efficient ways to use natural resources and lower your overall costs.
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Offsets give you the opportunity to negate the emissions that cannot be otherwise reduced. In addition, offsetting can help companies improve their corporate stewardship which, in turn, can improve overall image.
For further information on the benefits associated with
Purchasing offsets, see questions in the carbon offset above.
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The fight against climate change requires a commitment on behalf of all of everyone who contributes to the production of GHG emissions. By purchasing a carbon offset with CARBON CREDITS GROUP, you can:
  • Have a positive influence on the environment by neutralizing the emissions that you produce
  • Save money by minimizing emission-intensive activities like reducing the amount of energy you consume or the fuel you burn
  • Uphold your public image providing marketing potential
  • Be sure that your investment is in the hands of capable assessors, funding ethical projects
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CARBON CREDITS GROUP takes pride in showcasing our credibility. We provide customers with a high degree of transparency throughout the course of our business practices. At a minimum, CARBON CREDITS GROUP provides iso-based offsets that meet the WRI/WBCSD GHG protocol for project accounting. In addition, many of our projects meet additional offset standards, such as CCBA. We prepare emissions reports inaccordance with WRI/WBCSD GHG protocol corporate accounting and reporting standards. The CARBON CREDITS GROUP carbon emissions calculator discloses its methodology during the calculation process in a manner that showcases our accurate and up-to-date sources. For more information please visit our standards section.
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Yes. The process of quantifying greenhouse gas emissions could not occur without a third-party to verify or validate the quantification methods. All of our offset projects are subject to third-party auditing and verification.
Additionally, CARBON CREDITS GROUP’s internal record-keeping are up to date with industry best standards that are available to auditors upon request. Each tonne of carbon that is purchased through by consumers or organizations are serialized and registered both internally and on reputable offset registries.
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CARBON CREDITS GROUP takes pride in sourcing information provided by credible organizations such as the UNFCC, IPCC and the government of canada. Transparency is paramount to our company and we ensure our clients that we are using the most up-to-date data available. Visit our carbon emissions calculator methodology page for more details on the specifics of our methodology, or simply contact us.
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CARBON CREDITS GROUP provides clients with a variety of projects which are governed by various standards. CARBON CREDITS GROUP’s signature portfolio which includes high-quality, iso-based offsets in addition to CCBA and can build a customized carbon offset portfolio to meet your needs
CARBON CREDITS GROUP’s projects are:
  • Real — emissions reduction or removal must be created by a specific project. The benefit must be real and reliably ascribed to a project activity — not theoretical
  • Quantifiable — must be able to precisely account for the tonnes of CO2 equivalent reduced or removed by the project.
  • Verifiable — because of the value being placed on an intangible asset (one tonne of CO2 equivalent that is not in the atmosphere), one must be able to prove the reduction has occurred, and that it was the result of the project activity. All tenets of an offset must be audited before that offset is ready for use. Depending on the nature of the project, we select offsets verified to different standards, with priority currently given to ISO-14064-2 project origination standards, ISO14064-3 project verification standards, VER+, and CCBA.
  • Auditable — verification/validation reports delivered by accredited 3rd party verifiers.
  • Registered — when possible, all projects are registered, serialized and retired publicly with the canadian standards association (CSA) cleanprojects, markit, blueregistry or similar reputable project registries in order to avoid double-counting or the sale of offsets to more than one entity
  • Conservative — in a similar vein to the requirement for verifiability, using conservative approaches to estimation, measurement and monitoring ensures that an offset is sound. One must always choose the path that does not lead to overestimation.
  • Permanent — the beneficial action of an offset to the atmosphere must be durable and lasting. Offsets that result from reduced use of fossil fuels are often considered permanent by default. Because protection and restoration of forests and natural systems are also critical to stopping climate change, a variety of methods have been established to show permanence. Along with smart project design, the creation of a buffer pool of unsold offsets and/or the purchase of re-emission insurance can be utilized for this purpose.
  • Additional — the reduction or removal of greenhouse gasses by a project must be shown to be dependent on the expectation of revenues or removal of barriers caused by the fact that the project is being undertaken for offsets. This is to ensure that the offset really equals a true “-1” counterbalance to the pollution it is offsetting, rather than an emissions reduction that would have happened anyway. Projects must go beyond “business as usual” to generate offsets. The additionality of all of CARBON CREDITS GROUP’s projects is assessed using the CDM additionality tool.
  • Local — climate change is a global problem but many wish to make their solutions local. CARBON CREDITS GROUP has built capacity to source projects in the sectors and regions that suit our clients best. We supply ‘made-in-canada’ offsets to our home-country clients, and are processing country-specific offsets for clients worldwide.
  • Forward looking — in addition to adherence to carbon market best practices, CARBON CREDITS GROUP is committed to sourcing and developing projects that move climate change endeavours forward.
  • Provides co-benefits — wherever possible, CARBON CREDITS GROUP looks to maximize the value associated with socially responsible projects by selecting ones that have a direct and positive impact on their local communities to provide the highest value to our clients.
  • Accessible — proponents must allow for annual visits to project sites, and spot check audits on available and sold offset volumes.
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Offset projects produce carbon credits, whereas the word ‘permit’ is more appropriate relating to a cap and trade system. CARBON CREDITS GROUP takes pride in working with clients who identify the importance of measuring their emissions and explore reduction solutions. However, it is unlikely that any amount of emissions reductions will eliminate the production of CO2, thus these emissions can be neutralized through the purchase of accredited carbon offsets.
The main goal of an offset project is to reduce or sequester the amount of carbon that is generated on a daily basis. This is done through providing funding to offset project proponents that meet internationally recognized offset standards. Through purchasing offsets with CARBON CREDITS GROUP, you are assured that your money is funding some of the highest quality offset projects on the market.
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CARBON CREDITS GROUP is pleased to provide options from the offset projects that carbon credits group supports. Once you calculate the emissions you generate from our carbon calculator, you have an option to offset the emissions from our canadian offset portfolio.
Additionally, we help organizations to quantify their carbon footprint with CARBON CREDITS GROUP and identify projects that meet their specific needs (volume restrictions apply). For more details on how CARBON CREDITS GROUP can help your organization, please contact us.
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Carbon offsets are essentially the commodity that is generated by an emissions reduction project that would not have otherwise taken place without carbon financing, and thus achieves the requirement of being “additional” with respect to emissions reductions.
With your purchase of carbon offsets, the dollars associated with the transaction ensure the proponent’s project that generates emissions reductions continues to be viable over the project’s lifecycle.
Further, when high quality carbon offset projects are created, there are often a series of social co-benefits in the communities where the offset project is located. Social co-benefits may include education opportunities, air quality improvements, or job creation. The ongoing support and renewal of the carbon offset projects as a result of your purchase not only ensure emissions reductions from the projects continue but also that the social co-benefits associated with the projects remain in place.
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CARBON CREDITS GROUP values our client’s private information.
We operate on a secure server and any information that you provide to us is kept only for internal processing.
At CARBON CREDITS GROUP, we have our own internal carbon registry to document your offset purchases, and provide offsets on your behalf.
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It depends. If you are an individual, then the emissions that you offset cannot be claimed as a tax expense. However, if you are offsetting any component of your business, then you can claim the carbon offsets as a business expense. Please feel free to contact us for more details.
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CARBON CREDITS GROUP utilizes international standards when we Undertake a complete, consistent, accurate and transparent account of an organization’s carbon footprint. These standards are widely used by greenhouse gas emissions experts across the world. These accounting protocols are known as iso-14064- 1 and the wri/wbcsd ghg accounting protocol. Both standards are complimentary to one another.
Each specific project is retired on a different registry, depending on the offset project. The following are examples of the registries that are utilized by carbonzero:
  • CSA cleanprojects registry
  • VCS registry
  • Blue registry
  • TUV SUD registry
  • Markit registry
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When you purchase an offset with CARBON CREDITS GROUP, we ensure that your money will be allocated appropriately to the project that you have chosen to support. In order for your offset order to be processed, a number of administrative duties are required to process the order. In addition, the specific offset project that you are supporting requires verification / validation reports to be prepared to ensure that the carbon that is being sold as an offset is subject to accurate quantification.
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Carbon credits are a key component of national and international emission trading schemes that have been implemented to mitigate global warming. Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price. Credits can be used to finance carbon reduction schemes between trading partners and around the world.
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  • The “currency” for trading carbon credits is called carbon emission reduction (CER) commonly called as carbon credits.
  • One unit of CER is equivalent to the reduction of one metrictonne of CO2 or its equivalent.
Symbolically: 1 CER= 1 tonne of CO2 (or equivalent gases)
Carbon credits have been given the recognition of an intangible commodity and can be traded on the commodities market. Trading of carbon credits happens in the form of CERS or certified emissions reductions. CERS are in the form of certificates, just like a stock. A CER is given by the CDM executive board to projects in developing countries to certify that they have reduced greenhouse gas emissions by one tonne of carbon dioxide per year. For example: if a project generates energy using wind power instead of burning coal, and in the process saves, say 25 tonnes of carbon dioxide per year, it can claim 25 CERS (one CER is equivalent to one tonne of carbon dioxide reduced). How are CERS awarded? CERS are awarded based on the global warming potential of the gas. Greenhouse gases affect global warming with varying intensities. This intensity is measured by the “global warming potential” of the gas.
Illustration-iii: the global warming potential of methane is 13 and the global warming potential of carbon dioxide is one. Therefore, one tonne of methane has 13 times more the green house affect than carbon dioxide. (Refer annexure no 1 for the global warming potential of the kyoto identified green house gases)
CERS awarded = tonnes of green house gas reduced multiplied by global warming potential of the gas. (Refer annexure no. 5 And 6 for CERS issued by host party and CER issued V/S CERS requested respectively)
1.6 Clean development mechanism project cycle
Outline of the CDM project registration process: An industrialized country that desires to get credits from a CDM project must obtain the permission of the developing country hosting the project that it will contribute to their sustainable development. Then, using methodologies approved by the CDM executive board (EB), the applicant (the industrialized country) must make the case that the carbon project would not have happened anyway (I.E. Establishing additionality), and must establish a baseline estimating the future emissions in absence of the registered project.
The case is then validated by a third party agency called a designated operational entity (DOE) to ensure the project results in real, measurable, and long-term emission reductions. The EB then decides whether or not to register (approve) the project. If a project is registered and implemented, the executive board issues carbon credits to the project participants based on the monitored difference between the baseline and the actual emissions as verified by the designated operational entity (DOE).
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A company in a developed country has two ways to reduce emissions: A) it can reduce the ghg (greenhouse gases) by adopting new technology or improving upon the existing technology to attain the new norms for emission of gases, or
B) it can tie up with developing nations and help them set up new technology that is ECO-friendly, thereby helping developing country and its companies in earning credits. This is possible through the clean development mechanism (CDM) projects.
A company in developed country may prefer option ‘b’ to option ‘a’. The reason can be explained by the following illustration:
Example a: a company in a developed country ( annex l country) which emits 1,00,000 tonnes of carbon dioxide has to, being an annex i country follow the emission norms which sets a target of 80,000 tonnes(say). The two things that the company can do are:
  • To either invest in cleaner machinery and technology or
  • It can buy carbon credits to meet its target.
After evaluating the costs of the alternatives the company may decide to invest in clean development mechanism projects rather than setting up new machinery and technology because setting up new machinery may be more costly in developed country than buying carbon credits and investing in clean development projects.
The example will explain how this works for a company in developing country:
Illustration b: a company in vietnam (developing country) switches from coal power to wind energy, an activity which definitely reduces carbon emission. The cdm board then certifies
Carbon credits that by doing this the company has reduced carbon dioxide emissions by 1,00,000 tonnes per year. It is then issued with 100,000 certified emission reduction (or CERS commonly known as carbon credits).These cer/carbon credits can be sold to the companies unable to meet their targets in developed countries. Currently, the price of 1 cer is around 5-6 euros.
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Verified emission reductions (VER) br Ver is just like CERS, only that they are generated by small scale projects, which are assessed and verified by third party organizations rather than through the unfccc. Verified emission reductions (VERS) are units of greenhouse gas reductions generated from clean development mechanism (CDM) projects under the kyoto protocol, in developing countries and verified by external, un-accredited third party verifiers.
The VERS do not have to undergo the various steps for setting up a clean development mechanism projects, like registration, verification, certification, issuance of CERS as in case of CDM or ERUS. Buyers therefore tend to pay a discounted price for VERS, which takes the inherent regulatory risks into account.
A ver is a reduction of one metric tonne of greenhouse gas emissions (expressed as a co2 equivalent) below a baseline or business-as-usual level. 1 VER corresponds to one metric tonne of CO2 equivalent.
Voluntary markets for emissions reductions cover those buyers and sellers of verified emission reductions (VERS), which seek to manage their emission exposure for non-regulatory purposes.
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The clean development mechanism (CDM) is an arrangement under the kyoto protocol which allows industrialised countries with a greenhouse gas reduction commitment (called annex 1 countries) to invest in projects that reduce greenhouse gas emissions in developing countries.
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Stage i: project design document (PDD) and monitoring plan preparation
  • The first step in cdm projects starts with identification of an idea in order to develop a project. The initial step requires the project proponent to examine the emission reduction resulting from the project and to ascertain if it contributes to the development priorities of the nation.
  • The project sponsor has to develop a cdm project design document (PDD) for the identified opportunity in the PDD format approved by CDM executive board. The project design document form can be obtained from the unfccc website. Www.Unfccc.Or specific pdds exist for different project types:
    • I. Standard CDM project activities (CDM-PDD)
    • II. Small-scale project activities (CDM-SSC-PDD)
    • III. Afforestation and reforestation project activities (CDM-ARPDD)
    • Iv. Small-scale afforestation and reforestation project activities (CDM-SSC-AR-PDD)
    • V. Programme of activities (POA-DD) and cdm programme activities (POA-CPA-DD)
  • The broad categories of areas in which the CDM projects can be developed are discussed further in general and sector specific strategies to earn carbon credits.
  • The project design document should contain:
    • A. General description about the project
    • B. It should portray the project boundary and identifying of leakages
    • C. Selection of baseline and methodology. The company can also scan the existing projects for their baseline and methodology and adopt the same for their projects.
    • D. It can develop a new baseline methodology in case none of the existing approved/proposed baseline methodologies are found appropriate for the project.
    • E. Application of the selected/developed baseline methodology to the project
    • F. Demonstration of various additionalities for the project.
    • G. Assessment of various monitoring and verification (m&v) methodologies and selection of the most appropriate one.
  • This would also include a scan of approved projects or approved methodologies to ascertain if there are approved methodologies which may be applied to this project; h. Development of a new m & v methodology, on the occasion none of the existing approved/proposed methodologies are found appropriate for the project.
    • (I) estimation of potential streams of cers.
    • (II) environmental impact assessment for the project;
    • (III) sustainability assessment of the project
Stage ii: host country approval
  • Once the project promoter is convinced that the project is relevant under cdm, a project idea note is prepared and submitted for endorsement to the designated national authority (DNA) of the host country. Project sponsor is required to secure a host country approval from the designated national authority (DNA). This involves completion of a project information note in the moef format and its submission together with the pdd to moef. The project sponsor would be required to make a presentation to the dna on an appointed date. In india, national cdm authority clears sustainable development criteria for projects, usually within 60 days.
Stage iii: validation
  • To establish the ‘additionality’ of a project, it is necessary to first define a baseline against which project emissions can be measured. This baseline study is carried out in accordance with provisions in the kyoto protocol and marrakesh accord, and estimates the quantum of GHG reductions in terms of tonnes of carbon dioxide equivalents. The project idea note, the baseline study, and other relevant details are submitted for validation to an independent agency identified by the cdm executive board as a doe (designated operational entity).
  • The doe checks whether the proposed project activity meets all the requirements of the CDM and submits its validation report to the executive board. Validation is the process of independent evaluation of a project activity against the requirements of the CDM on the basis of the project design document by a designated operational entity (DOE).
  • The project sponsor is required to appoint an independent third party for validation of the project. CDM-EB has approved certain entities E.G. DNV, TUV, SGS etc. As designated operating entity (DOE) for undertaking validation. The validation process also involves a public disclosure of the project for 30 days at the unfccc website. This is also organized by the validator.
Stage iv: approval of baseline methodology by CDM–EB / methodology panel
Project participants willing to register a CDM, project activity shall:
  • Use a methodology previously approved by the executive board or
  • Propose a new methodology to the executive board for consideration and approval.
  • If the project is a first of its kind then it will probably have to propose a new methodology. In case a new baseline methodology is developed, it is reviewed by a panel of experts constituted by the executive board called the “methodologies panel” before final board approval, and on its recommendation, it is approved by CDM -EB.
  • The new baseline methodology should be submitted by the designated operational entity to the executive board for review, prior to a validation and submission for registration of this project activity, with the draft project design document (CDM-PDD), including a description of the project and identification of the project participants.
  • Proposing a new methodology is a time consuming process as this process can take 12-18 months to get approved. Also, consultants charge a lot more for projects that require a new methodology.
Stage v: project registration
  • A validated project is required to be registered with CDM-EB of unfccc. This is usually the responsibility of the designated operating entity. The project sponsor is required to pay a registration fee.
  • Registration is the formal acceptance by the CDM-executive board of a validated project as a CDM project activity. Registration is a prerequisite for verification, certification and issuance of cers related to that project activity.
Stage vi: monitoring and verification
  • Verification is a periodic independent review and ex post determination by the designated operational entity of the monitored reductions in anthropogenic emissions by sources of greenhouse gases that have occurred as a result of a registered cdm project activity during the verification period. Certification is the written assurance by the designated operational entity that, during a specified time period, a project activity achieved the reductions in anthropogenic emissions by sources of greenhouse gases as verified.
    • (I) on registration of the project, the project sponsor is required to appoint one of the designated operational entities (DOE) as a verifier
    • (II)the verifier conducts an audit of the project activity after its commissioning and its becoming operational, as per the approved monitoring and verification protocol (included in the pdd registered with CDM-EB), to estimate and certify the actual volume of cers generated on account of the project activity.
    • (III) the sponsor may appropriately select a verification cycle i.E. Annual, half yearly, quarterly etc.
Stage vii: certification
  • Certification is written assurance by the designated operational entity that, during a specified time period, a project activity achieved the GHG emissions reductions as verified.
Stage viii: issuance of cers
  • (I) the certification report, submitted by the doe to CDMEB/ registrar, shall constitute a request for issuance to the executive board of cers equal to the verified amount of reductions of anthropogenic emissions by sources of greenhouse gases.
  • (II)the monitoring and verification entity, after completing the process, submits its report to CDM EB, which constitutes a request for issuance of certified emission reduction (CERS).
  • (III) a project can continue to earn CERS for a maximum of either 10 years (with no change of the baseline) or 7 years with at most two renewals (i.E. Up to 21 years).
  • (Iv) 2% of the share of proceeds from the cers must be forwarded towards the adaptation fund of the kyoto protocol.
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The CDM project has to generally state as to what would have happened without the project. The basic idea of additionality is that those project activities that would also occur without the CDM, i.E. That are business as usual, should not be certified under the CDM.
Additionality can be:
1) Environmental additionality: it looks as to what would happen without the project. This includes a dialogue of impact of the project activity on resource sustainability, reduction of the level of pollution by the project etc.
2) Technological additionality: the CDM project activities should lead to transfer of environmentally safe and sound technologies and knowledge.
3) Financial additionality: the project should bring in additional investment consistent with the needs of the people.
4) Emission additionality: the project should lead to real, measurable and long term GHG mitigation. The additional GHG reductions are to be calculated with reference to a baseline
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A baseline for a CDM project gives the greenhouse gases emissions that would have occurred in the absence of the proposed cdm project activity. If a project gets 20,000 cers it means that its emissions are 20,000 tonnes of carbon dioxide less than a reference point called a baseline.
The amount of emission reduction of the green house gases is the difference between the emissions that would have occurred without the project minus the emissions of the project. The construction of such an imaginary scenario is known as the baseline of the project. The baseline may be estimated through reference to emissions from similar activities and technologies in the same country or other countries, or to actual emissions prior to project implementation.
What authorities involved in the cdm project cycle:
I. Clean development mechanism-executive board (CDM-eb)
II. Designated operational entity (doe)
III. Designated national authority (dna)
Clean development mechanism-executive board (CDM-eb):
The cdm projects are supervised by executive board of the unfccc which is, elected by the conference of parties (cop). The executive board supervises the operation of cdm. The board has the final say on whether a project is to be approved or not and lays out procedures and guidelines for cdm. The cdm executive board is the highest international body under the kyoto protocol to register projects and issue credits. The board comprises 10 experts drawn from the parties to the kyoto protocol as follows:
One representative from each of the five un regions (africa, asia, latin america and the caribbean, central eastern europe and oecd), two representatives from annex i and non-annex i countries respectively and one representative from the small island developing states.
Designated operational entity (doe):
A designated operational entity (doe) is a company accredited by the cdm executive boards that checks whether projects are fulfilling cdm criteria. A cdm project must be checked by two processes – validation and verification. Validation is done once before initial project approval. Verification is done periodically after the project has been approved or registered. They act as an intermediary between the project developer and the executive board. A large scale project cannot have same designated operational entity for validation and verification.
Designated national authority (dna):
Designated national authorities are authorities to manage the kyoto process and specifically the “cdm process” whereby these host government entities decide which greenhouse gas projects they do or do not wish to support for authorization by the cdm executive board
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All the parties mentioned below are the stakeholders of a CDM project as the project performance is dependent or affects them directly or indirectly.
A) cdm project sponsors: project sponsor means the developed country which undertakes to sponsor a clean development mechanism project in a developing country. The sponsor country ties up with the company and provides them technological and financial support for setting up a project and in turn these companies transfer the cers generated to the sponsor to help them meet their emission target.
B) host country: the host country being the developing country takes into consideration the benefits likely to arise out of the project before permitting a sponsor to set up such a project because being a host country it has to see to it that the project is beneficial to the country.
C) contractors: they include the contractors who undertake project implementation like consultancies, installation of machinery, renovation of plant or other method adopted to undertake the project.
D) public/private financial institutions: setting up of a project requires huge cost. There are various financial institutions which now provide financial as well as technical assistance to the companies in order to initiate a project.
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