Understanding CDM Methodologies - SuSanA

Figure 2: The CDM project cycle
CER Issuance
by CDM Executive
Board
Methodology
Development
PDD Development
Verification and
Certification
by Designated
Operational Entity
CDM
Project Cycle
Approval
by DNAs
Monitoring
by project participants
Registration
by CDM Executive
Board
Validation
by Designated
Operational Entity
Need for
approved Baseline
and Monitoring
Methodology,
otherwise
New
Methodology
Submission
Revision
of Existing
Methodologies
Validation of PDD
by DOEs
The project cycle starts with the submission of a new baseline and
monitoring methodology if no methodology approved by the EB exists for
the project type 101 . These methodologies have to be developed by project
participants 102 . A new methodology submission has always to be submitted
together with a Project Design Document (PDD) describing the application of
the methodology to a project 103 . As frequently new methodologies have been
developed without having a sufficiently developed project, project developers
have resorted to developing a PDD for a fictitious project (“dummy”).
Approved methodologies can be revised at any time but the revisions do not
apply to projects that have been registered earlier as long as their crediting
period is not renewed 104 . This means that several versions of a baseline
methodology can be in use at the same time depending on the registration
date of projects. Once approved, methodologies are a public good. This
and the high risk of rejection has led to a reluctance of the private sector to
develop methodologies as this can be very costly.
Once a PDD has been written, it is submitted to a DOE for validation 105 ,
which then published it for public comments The DOE checks whether the
PDD fulfils the CDM requirements 106 , especially with regards to eligibility
of host country to participate 107 , local stakeholder comments 108 , analysis
of environmental impacts 109 , correct use of an approved baseline and
monitoring methodology 110 and existence of an approval letter of all
countries involved in the project 111 . A monitoring plan has to describe
collection and archiving of all relevant data necessary to determine baseline
101
Ibid., para 37 (e)
102
Ibid., para 45 (a)
103
Ibid.,para 38
104
Ibid., para 39
105
The key elements of a PDD are defined in Appendix B to decision 3/CMP.1
106
Annex to decision 3/CMP.1, para 35
107
Ibid., para 37 (a)
108
Ibid., para 37 (b)
109
Ibid., para 37 (c)
110
Ibid., para 37 (e)
111
Ibid., para 40 (a)
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