Consultancy Services

Clean Development Mechanism (CDM) is a market mechanism under the Kyoto Protocol, which aims to reduce greenhouse gas emissions while promoting sustainable development in developing countries by encouraging environmentally friendly investment and technology/knowledge transfer from the industrialized countries. As an incentive the industrialized country participant (i.e. government or company) receives credits in the form of certified emission reductions (CERs) which they can use against their Kyoto emission targets, and the developing country participant receives revenues from the sale of the CERs.  

For a project to be eligible under the CDM it has to satisfy two critical criteria, namely ‘additionality’ and ‘sustainable development’. For a project to satisfy the additionality critieria it must be demonstrated that the reductions in emissions are additional to those that would occur in the absence of the project activity (i.e. in the business as usual scenario). It is up to the Designated National Authority (DNA) in the host country to set the specific sustainable development criteria against which the project proposal will be assessed, although these will likely include social, economic and environmental improvement requirements.  

Under the Kyoto protocol, small-scale CDM project activities include renewable energy projects, energy efficiency improvement projects and methane recovery or avoidance. The food, agriculture, waste, starch and palm oil sectors in SE Asia all have significant potential to benefit under the CDM, as many of these processes generate solid and liquid waste streams that can be used as biomass, or to generate biogas, both of which can substitute fossil fuels. Furthermore, biogas harnessing projects also reduce the volume of methane (a potent greenhouse gas) that would have otherwise been emitted to the atmosphere, and these reductions also qualify for CERs.  

The CDM project cycle is a fairly complex process which we have attempted to simplify in the flow diagram in our CDM Capability Sheet . SLP primarily offer CDM consultancy services from Stages 1 through to 4 and independent project auditing and monitoring services for active projects. We work with the local project proponent to assess whether it is likely to qualify for CDM by undertaking a Pre-screening and Feasibility Assessment. If the result is positive we would produce a synopsis of the proposal in the form of a Project Idea Note for submission to the host country Designated National Authority (DNA) and potential equity investors/funders and carbon credit buyers for their feedback. We would then produce the detailed Project Design Document (PDD) on behalf of the client for submission to a CDM Executive Board (EB) accredited Validator and the host country DNA for their review and approval. Once the project has the necessary approvals it is submitted to the CDM EB for Registration, following which the Project Implementation works can commence. The CER’s are issued on a yearly basis following the commencement of the project activity, subject to independent verification from a CDM EB approved Verifier that the project activity has resulted in the anticipated GHG reductions.

Implementing CDM is a classic win:win scenario; in that it is good for business and good for the environment. Depending on the scheme, the project owner can potentially benefit via technology transfer, reduced energy bills and an additional revenue stream from the sale of the CER’s, whilst actively doing their bit in the fight against global warming and climate change. Find out if your business is potentially eligible under the CDM by contacting us and we will offer you a preliminary screening assessment free of charge.

SLP Environmental provides CDM consultancy services in the following SE Asian countries: Thailand, Vietnam, Lao PDR, Cambodia and Malaysia. Whether you are a potential project host, investor, CER buyer, or technology vendor interested in learning more about our CDM consultancy capabilities read our press release or contact us at info@slpenvironmental.com