Environmental guidance for your business in Northern Ireland & Scotland
Clean Development Mechanism (CDM) and Joint Implementation (JI) projects can offer a range of business opportunities including:
The Environment Agency is responsible for the approval of CDM and JI projects made after 1 June 2011. CDM and JI projects must be established in accordance with the procedures and processes given by the United Nations Framework Convention on Climate Change (UNFCCC). If a methodology does not exist for a project type, a new methodology can be developed and submitted to the UNFCCC.
To register a project a developer must:
Not all emissions reduction projects automatically qualify. A concept referred to as 'additionality' underpins all carbon offset projects. A project activity is deemed additional if emissions of greenhouse gases are reduced below those that would have occurred in the absence of the registered project activity. A carbon credit will eventually be retired to offset a tonne of emissions elsewhere, so if credits are issued to projects for emissions reductions that would have occurred without the project, then there would be no overall emissions reductions. The Environment Agency is the UK's Designated National Authority (DNA) for the CDM, and issues the Letters of Approval (LOA) for voluntary participation in the scheme.
Annex I countries are able to host JI projects and Non Annex I countries can host CDM projects, subject to certain conditions being met.
To host CDM projects, Non Annex I countries need to have appointed a Designated National Authority (DNA).
Please note some countries are ineligible for either mechanism.
If you are registering your project with a UK project participant you will need:
Please note that the UK Government does not approve JI projects in the UK, but can issue letters of approval to UK companies wishing to participate in JI projects overseas. The Environment Agency is the UK's Designated National Authority (DNA) for the CDM and is the UK's Designated Focal Point (DFP) for JI. The Environment Agency issues the Letters of Approval (LOA) for voluntary participation in both schemes.
If you have any queries on letters of approval you can email:
All CDM project applications must be validated by a UN accredited validation agency, known as a Designated Operation Entity (DOE), before being submitted to the UNFCCC.
JI projects need to be determined by a UNFCCC approved Accredited Independent Entity (AIE).
There are a range of companies offering consultancy services that can help you register your CDM or JI project with the UNFCCC. You could also opt to register your project yourself. There are significant costs associated with registering a project under the CDM or JI. However, for small scale projects there are simplified procedures which alleviate some of these costs.
There are a wide range of companies, from large well known organisations to specialist SMEs that have developed services around the global carbon market.
There are two trade associations operating in the sector, the Carbon Market and Investors Association (CMIA) and the International Emissions Trading Association (IETA) .
To receive credits from a CDM or JI project you will need to hold a registry account.
The Carbon Trust offers zero percent interest loans to help organisations finance and invest in energy saving projects. Find out more about loans for energy saving projects on the Carbon Trust website.
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