Outline of the Procedure of CDM Project
An industrialized country that wishes to get credits from a CDM project must obtain the consent of the developing country hosting the project that it will contribute to sustainable development. Then, using methodologies approved by the CDM Executive Board (EB), the applicant (the industrialized country in our case) must make the case that the project would not have happened anyway (establishing additionality), and must establish a baseline estimating the future emissions in absence of the registered project. The case is then validated by a third party agency, a so-called Designated Operational Entity (DOE) to ensure the project results in real, measurable, and long-term emission reductions. The EB then decides whether or not to register (approve) the project. If a project is registered and implemented, the EB issues credits, so-called Certified Emission Reductions; CERs (one CER being equivalent to one metric tonne of CO2 reduction), to project participants based on the monitored difference between the baseline and the actual emissions, verified by an external party called a DOE.