Clean Development Mechanism

CDM the main Carbon Credit standard
There are several standards under which to develop and generate carbon credits that can substantially increase the economic attractiveness of projects that are reducing carbon emissions. The main mechanism is called the Clean Development Mechanism (CDM) of the UNFCCC, with as main offtakers compliance buyers from Europe that need to offset emissions when exceeding their emission caps. Our partners have the strongest CDM track records in South Africa, not only being experienced in getting projects registered with the UNFCCC, but also being successful in getting projects through the process of actually generating certified and tradable carbon credits.

Successfully generating Carbon Credits starts with a robust Project Design Plan
A registered project is not per definition a successful project. A large part of the success is embedded in a well written Project Design Plan that includes an emissions monitoring plan that is practical to implement and allows for some flexibility. A verified and approved Project Design Plan upon registration does not mean it is a practicle and well implementable plan. It only assures that it is well alligned with CDM rules.

A successful CDM implementation can only be accomplished bringing together a good understanding of both the CDM rules and the dynamics of the technical and commercial development of the project. If this has been done properly during registration and the emission monitoring and certification is handled good as well, you will reach the stage where the whole process was aimed at: the generation of actual carbon credits that (depending on market conditions) can be traded for say 10-15 Euros per unit.

Various Types of Projects can Qualify for Carbon Credits
In order to be eligible, projects need to make a contribution to the reduction of Green House Gasses (GHGs). The latter not only includes carbon dioxide (CO2) but also gasses like methane (CH4) that are for example coming from organic waste or Oil & Gas operations. Examples of project types that may qualify are: renewable energy project, energy efficiency projects in the industrial, domestic and built environment and  forestry projects.