Being one of the oldest consulting and project development team in UNFCCC CDM and GHG projects, we are involved in various CDM projects across the World as a Consultant and Developer since 2005.
In general the CDM project development and monetization process cycle consists of the following steps:
- Review of the project activity and preparation of strategy.
- Decide whether to register the project as a single standalone CDM Project Activity (CDM PA) or as a CDM Programme of Activities (CDM PoA) where multiple project instances can be included in the PoA at a later stage.
- Preparation of Project Idea Note.
- Intense discussions with the project owner to solidify the approach to be followed to accomplish the task of monetization of the carbon and environmental attributes. At this time generally the crediting period to go for is decided. For CDM Project Activity the crediting period is either for 10 years fixed or 7 years renewed 2 times so that the total project crediting is 21 years. Every time, at the time of crediting period renewal the base line has to be reassessed and applied accordingly. In case of Programme of Activities the Crediting period is 28 years, renewal 3 times after every 7 years. Generally during these discussions the applicable approved methodology to be used should have been decided. In case it is found that there is no approved technical methodology which is applicable as per the existing or proposed project activity then a new methodology is to be written and get it approved from the UNFCCC CDM Secretariat and CDM EB. It may be possible that along with the new methodology approval application we may submit the project for the Validation also. List of approved CDM methodologies based on technical sector and scale of projects are available here
- Appointment of the CDM DOE. As per the approved methodology Project Design Document (PDD) in case of CDM PA, and PoA Design Document (PoA DD) in case of CDM PoA is prepared and published by the appointed DOE for international stake holder consultation process on the UNFCCC web site. By this time local stake holder consultation must have been completed and recorded the details as appropriate in the PDD/PoA DD. Once the publishing period is completed the project onsite visit is conducted by the appointed CDM DOE.
- In the meantime or before this stage, Host Country Approval letter is obtained for implementing the project in any particular country. This is called as Letter of Approval (LoA).
- CDM DOE issues the audit findings after conducting the project site visit.
- Audit findings are replied with relevant evidences and then CDM DOE may close all CAR’s and CL’s and uploads the Final Validation Report along with associated documentation to the UNFCCC CDM website. Alternatively CDM DOE may issue a negative opinion.
- Payment of CDM Registration fees to UNFCCC, if applicable.
- Replying to CDM Secretariat / CDM EB findings and questions as may be applicable through CDM DOE.
- Registration of the CDM PA or CDM PoA with UNFCCC. CDM EB rejection of the Registration request is also a possibility.
- Adding of CDM Programme Activity/ies (CPA/s) to the CDM PoA after due audit by the CDM DOE. CDM EB rejection of the CPA addition request is also a possibility. One or more CPAs can be added to the PoA immediately after the date of registration of the PoA. CDM PA / CPAs can have one or multiple methodologies.
- Monitoring the Project as per the registered Monitoring Plan described in the project registration documentation either for the CDM PA or CDM CPA/s.
- Preparation of Monitoring Report for CDM PA or CDM CPA/s.
- Hiring of CDM DOE for conducting the Verification and Certification of CER’s.
- Publishing of the relevant Monitoring Report/s on the UNFCCC website
- After the completion of the prescribed publishing period, conducting of onsite field visit by the appointed CDM DOE to check the operation and monitoring of the project activity.
- Issue of Verification audit findings by the appointed CDM DOE.
- Audit findings are replied with evidences and CDM DOE closes all CAR’s and CL’s and uploads the Final Verification Report along with associated documentation to the UNFCCC CDM website. Alternatively CDM DOE may issue a negative opinion.
- Payment of CER issuance fees if applicable to UNFCCC.
- Replying to CDM Secretariat / CDM EB findings and questions as may be applicable through CDM DOE.
- Completion of CDM Verification and Certification process. Issuance of CER’s by the UNFCCC system. CDM EB rejection of the issuance request is also a possibility.
- Sale of credits based on a forward or spot contract to a CER buyer.
- If necessary and appropriate, changes to the CDM PA or CDM PoA documentation can be made by a formal process during Verification or separately as a specific activity through a CDM DOE and approved ultimately by CDM Secretariat / CDM EB. Based on the nature of changes proposed, prior approval of CDM Executive Board may be mandatory.
- Project earns CER’s as long as the crediting period is active and verification is successful with UNFCCC process. In case the project has become inactive and no more operational for any reasons what so ever, CER’s cannot be issued since CER’s are issued only on the basis of the actual project operation as per the registered CDM project documentation.
For further details and explanation visit the relevant UNFCCC page here.
It may be possible as per the applicable regime/credit standard specific rules, to shift a CDM/GHG project from one regime to another regime, to continue earning the emission reduction certificates. Speak to our experts today to understand more on the applicable scenarios and opportunity.
Possible business engagement models with us include:
- Pure consulting engagement based on task wise deliverables with fixed fees payable at pre-determined process stages. In general this model is called as fixed fee model.
- A consulting model based on task wise deliverables with professional fees payable as a percentage of the emission reductions, CER’s/VER’s that are going to be certified. In general this model is called as success fee model.
- A consulting model which is a hybrid of the above mentioned model 1 and model 2. A combination of fixed fees and success fees as a percentage of the emission reductions certified. In general this model is called as fixed cum success fee model.
- An ERPA (Emission Reduction Purchase Agreement) model wherein we offer project owner a fixed or floating price for the credits, and we prepare documentation and pay the validation and verification cost of the project.
- Special engagement model devised on a case by case basis for a specific project activity.
Based on the specific project characteristics, market conditions and other relevant parameters KMS may or may not offer one of the models described as above.
Contact us today to receive best in class technical project development and strategically beneficial services. Let’s start the discussion to responsibly and effectively monetize carbon and environmental attributes.
Some Non AFOLU project references
Bundled Wind Power Project in Tamil Nadu, India, co-ordinated by Tamil Nadu Spinning Mills Association (TASMA-II)
Grid connected electricity generation using natural gas by the Vemagiri Power Generation Ltd.
Natural Gas based grid connected power project at Peddapuram, A.P. by Gautami Power Limited
19.8MW grid connected Wind farm project by K.P.R Mill Private Limited, Tamil Nadu, India at Villages: Keelaveeranam, Kuruchampatti, Vadi, Ayansurandi, Rajagopalaperi, District: Tirunelveli, Tamilnadu by M/s K. P. R. Mill Private Limited
Wind Power Generation Project activity by Interocean Shipping India Private Limited
Grid connected natural gas based power project in Raigad District, Maharastra, India
The Converging World Renewable Energy India Wind Farm Phase 1
Bundled Wind Project by Sahyadri Industries Limited
Electricity Generation using renewable wind energy by Sahyadri Industries Limited
GHG Programme – Energy Demand Group1
GHG Programme – Energy Demand Group2
GHG Programme – Energy Demand Group3
GHG Programme-Energy Industries Group1
GHG Programme-Energy Industries Group2
GHG Programme-Energy Industries Group3
GHG Programme-Energy Industries Group4
GHG Programme-Energy Industries Group5
GHG Programme-Energy Industries Group6
GHG Programme – Manufacturing industries Group1
GHG Programme- Waste Handling & Disposal Group1
GHG Programme- Waste Handling & Disposal Group2
GHG programme – Energy Industries and Waste Handling and Disposal Group 1
GHG Programme – Energy Industries and Waste Handling & Disposal Group 2
GHG programme – Energy Industries and Manufacturing Industries Group 1
GHG programme – Energy Industries and Manufacturing Industries Group 2
GHG Programme – N2O Technologies Group1
GHG Programme – N2O Technologies Group2
GHG Programme – N2O Technologies Group3
GHG programme-Fugitive emissions from fuels (solid, oil and gas) Group1
GHG programme- Chemical industries and Fugitive emissions from fuels (solid, oil and gas) Group1
GHG programme-Energy industries and Fugitive emissions from fuels (solid, oil and gas) Group1
GHG Programme – Energy Industries Group 7
GHG Programme – Energy Industries, Energy Demand and Manufacturing Industries Group1
Some AFOLU project references
GHG Programme-Afforestation and Reforestation Group1
GHG Programme-Afforestation and Reforestation Group2
GHG Programme-Afforestation and Reforestation Group3
GHG Programme-Afforestation and Reforestation Group4
GHG Programme-Agriculture Group1
GHG Programme-Agriculture Group2
GHG Programme-Agriculture Group3
Note that the above project list is NOT comprehensive. It is only for informational purpose. Please contact us for any technical sector specific reference projects and capability statements.
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