The generation of reduction licenses is subject to a complicated and bureaucratic registration process that involves
- two national governments,
- a neutral third-party organisation and
- the international board that is responsible for the supervision of such projects.
Carrying out this time-consuming procedure is one of the main responsibilities of emisciency.
1. Project Design: The first step is to frame a general description of the project and a suitable monitoring plan, known as the Project Design. It has both a prescribed format and mandatory content and provides the basis on which project approval decisions are made. The Design Document also describes the situation (including the greenhouse gas output) in absence of the project to allow the calculation of the emission reductions expected from the project.
2. National Approval: Then, the government of the state in which the project is carried out has to declare its approval. The government of the state in which the certificates will finally be sold has to declare that it will treat the certificates under the regime of the 1998 Kyoto Protocol.
3. Validation: Thirdly, an independent entity evaluates the project on the basis of the Project Design Document (see 1.) against the requirements of the Clean Development Mechanism (CDM).
4. Registration: Next, the independent entity submits the project to the CDM Executive Board with a request for the formal acceptance as a CDM project activity. Registration is the prerequisite for the verification, certification and issuance of CERs related to that project activity.
5. Implementing and Monitoring: Now, we implement the project and monitor its actual emission reduction.
6. Verification and Certification: Subsequently, the independent entity verifies and certifies that emission reductions took place in the amount claimed.
7. Certificate Issuance: Finally, the independent entity requests the issuance of the actual Emission Reduction Certificates from the CDM Executive Board.