PRACTICAL ASPECTS

OF DEVELOPING
A CDM PROJECT
- A DEVELOPER’S PERSPECTIVE
Workshop on Carbon Credits and The Sugar Industry
1st October, 2007

- Jinesh Amlani (Market Analyst)

- Nishikant Singh (Consultant)
 OVERVIEW OF THE CDM CYCLE
Preparation of DNA Clearance
Selecting Data Collection
PCN/PDD – MoEF
Consutant 6 weeks
4 Weeks 8 weeks

Request for
Validation
Registered Registration
14 weeks
8 weeks

Verification
Issuance Trading
(Every year)
6 weeks 4 weeks
4 weeks
HANDLING STEP ZERO – AN ESSENTIAL

• UNFCCC wants an official communication

that the benefits from CDM were considered

• Best form of such an official communication is

a ‘BOARD RESOLUTION’.

• The Board Resolution confirms that the

Project Developer had seriously considered
the CDM Revenue
ADDITIONALITY – TECHNICAL & FINANCIAL

Additionality means ‘How the project is different’

Technical Additionality:

Boiler above 90 kg/cm2 New Turbine design

Financial Additionality
Low Internal Rate of Return
Difficulty in arranging finance
(IRR)
 MONITORING ASPECTS

Should be robust & There should be a Any possibility of a

efficient back-up for all leakage should be
parameters considered

SUGAR
Quantity of Heat Generated
Quantity of Electricity Generated
Quantity of Biomass Used
DISTILLERY
Methane recovered using Flow Meters
Quantity of Heat / Electricity
Generated
COD of the spent wash before and
after treating
LOCAL STAKEHOLDERS’ CONSULTATION
Phase I : Identifying and Inviting
Villagers Posters
Employees Circulars
State PCB
Reg. Com Letter
Financial Inst.
Phase II : The D Day
 Attendance Sheet
 Explain about CDM
 Invite/Take Comments
Phase III : Reviewing Comments and taking Actions
– Positive Comments : Most Welcome
– Negative Comments : Take remedial Actions
VALIDATION & REGISTRATION
Four preferred Validators (DOEs) operating in India:

BVQi DNV SGS TUV-SUD

Validators validate the PDD (for a fee) and forward it

to EB for registration

Executive Board registers the project for a small fee

FINALLY !! REALIZING THE MONEY

CER meter is down, once the project is registered.

Annual verification of the project has to be done by a DOE.

CER Certificates are issued after verification is done

Trading of CERs

Spot Forward
LETS MAKE MOST OF
THE MOMENT…
Data required for preparation of PIN & PDD
 Name of Project Promoters and Contact Details
 Project Construction Start & Completion Date
 A copy of Detailed Project Report (DPR)
 Copy of Power Purchase Agreement
 Copies of All Clearances Required.
 Financing Details of the Project.
 Subsidy element in the Project.
 Copy of EIA conducted.
 The projects that have been taken up by the company to become an
environment friendly organization.
 Project Promoter’s Credentials.
 Comments of Ministry of Environment & Forests (if any).
 Social Responsibilities fulfilled by the Company.
 Details of the Monitoring Equipment, used to measure steam
production, electricity generation and export, bagasse consumed.
 Name and Designation of the person monitoring the Project