The path to CER certification

From the development of a project idea to the generation of the Certified Emission Reduction (CER), a number of different parties are involved. Several quality assurance measures guarantee that transparency and audit trails for the greenhouse gas reductions are in place.

Step 1: The project idea

The concept of a carbon offset project is outlined using the "Project Idea Note" (PIN) document. The PIN contains the most important information about the project and a rough estimate of the emissions reduction. myclimate checks the compatibility of the project with the CDM criteria and decides whether the project is to be implemented as a CER or VER project.

Step 2: The Project Design Document (PDD) and the agreement of the host country

The PDD contains a range of information about the project, including the volume of emission reductions expected over a specific time period (7 or 10 years), the CDM methods used and the monitoring plan, which allows the emission reductions during project duration to be quantified. Emission reductions are compared to a reference scenario and calculated accordingly. This hypothetical reference scenario ("baseline"), describes how emissions would have developed if the project had not been completed and in most cases reflects the conventional or economically most profitable technologies in the respective country. The responsible agency in the host country (Designated National Authority, DNA) authorises the PDD and in doing so also signs off the suggested CDM project. myclimate writes the PDD or supplies other help because project partners are often unfamiliar with the CDM regulations. 

Step 3: Validation

The PDD needs to be checked by an independent institution (Designated Operational Entity, DOE), in other words, it needs to be validated. During this process the methods for comparison with a reference, the calculation of emissions reductions, additionality and the monitoring plan are assessed. As part of the validation process, the PDD is published on the UNFCCC website for 30 days for public comment.

Step 4: Registration – the role of the CDM executive board

Following successful validation, the project developer makes an application for registration of the project. The CDM executive board, as the executive branch of the United Nations in terms of Clean Developent Mechanism, decides on the registration.

Step 5: Monitoring 

Following the commissioning of the project, the monitoring phase begins. According to the monitoring plan described in the PDD, the required parameters are now monitored, so that the emission reductions may now be calculated and quantified. The procedure and results are documented in a monitoring report.

Step 6: Verification

Just as the PDD was validated, the monitoring reports also need to be checked by an independent organisation. This process is called "verification" and is generally done annually by the same institution that completed the validation. Verification assesses the completeness and correctness of the monitoring report.

Step 7: Issuing the CER

If the monitoring report has been verified successfully and without reservations, the CDM executive board authorises the generated CER. Following this, the CER turn into tradeable certificates in a number of emission trading systems. They are issued in digital format to accounts of sellers and buyers. When myclimate uses CER for voluntary offsetting, the CER are struck from the respective register and thereby withdrawn from the market.