The CDM is designed to provide finance to projects that will contribute to sustainable development in the country where the project is located. To qualify under the CDM a project must go beyond business as usual and reduce emissions below what they would have been assuming normal economic development.
CDM project developers range from small cooperatives to large industrial corporations, and the CDM touches every economic sector, from agriculture to heavy industry. Typical project types include renewable energy, methane capture from landfill, agriculture and coal mines, fuel-switch in boilers for heat and electricity generation, energy efficiency and reduction of industrial gas emissions such as HFCs and N2O.
Cemtrex helps project developers to identify project opportunities, to finance the project, create the credits and to bring them to market to achieve the best price. We can also introduce technology and we can package a full build-own-operate service, where we combine project management, technology and finance together to enable clients who don't have the time or the resources to benefit from the CDM.
Clean Development Mechanism (CDM) - Credit creation
There is an established process for creating CERs:
- assess the additionality of the project and write a project idea note (PIN)
- choose a baseline methodology or if none is available, create one and get it approved
- write a detailed project design document (PDD)
- have the PDD independently validated by a Designated Operational Entity (DOE)
- have the project approved by the Designated National Authority (DNA) of the country where the project is located
- submit the project for approval by the United Nations CDM Executive Board
- have the project registered by the CDM Executive Board, following public consultation
- monitor the performance of the project every year, have the emission reductions independently verified by a DOE, and
- get the CERs issued
Cemtrex has experts in-house to take your project through the whole credit creation and issue process. We create the necessary documents including PDDs and methodologies, manage the appointment of DOEs and shepherd the project through the CDM Executive Board. We have strong expertise and a reputation for successfully rescuing other advisors projects that have failed in their first attempts at registration.
Cemtrex can either charge a fee for carrying out some or all of these activities (except independent validation and verification), or be paid on a success fee basis when it markets and monetizes the CERs on behalf of the client.
