The Project Development Process

Developement of a carbon mitigation project is a multi stage process involving project owner, developer (project participant), buyer, local consultants and other entities such as Designated Operational Entities (DOE) & Designated National Authorities (DNA).

Project developement can take upto 18 months to reach registration stage and a further 12 to 18 months for credit issuance. A good level of forward planning and cooperation is required between the stakeholders for the development of project pipeline and its successful and timely execution. 

Final Carbon identifies potential carbon mitigation projects in non-Annex 1 countries. A feasibility analysis is performed to ascertain the eligibility of the project, additionality  of the project activity, environmental impacts, potential CER volumes and delivery risk.

Final Carbon then approaches potential buyers  and negotiates a purchase agreement (ERPA) with the buyer and seller.

The project progresses into the next phase in development which involves project design. A Project Design Document (PDD) is prepared by Final Carbon and submitted for validation. Final Carbon then engages a Designated Operational Entity (DOE); which is an independent evaluator; to perform validation of the project and the PDD in line with UNFCCC requirements. Validation is followed by registration which is the formal acceptance of the project by the UNFCCC.

Final Carbon prepares a monitoring plan for the verification of GHG reductions. A DOE is engaged to perform verification that GHG reductions have occurred as a result of the project activity in line with the monitoring plan. The project receives certification of the GHG reduction achieved which results in the issuance of Certified Emission Reductions (CERs).

Types of projects

The CDM mechanism groups projects into the following sectors:

• Energy generation (renewable & non renewable)
• Energy distribution
• Energy demand
• Manufacturing
• Chemical industry
• Construction
• Transportation
• Mining/mineral production
• Metal production
• Fugitive emissions from fuels
• Fugitive emissions from halocarbons and SF6
• Solvent use
• Waste handling and disposal
• Land use, land use change and forestry
• Agriculture

Projects from these sectors are able to use the various mitigation activity types to generate CERs. The mitigation activity types are as follows:

• Displacement of a more GHG-intensive output
• Renewable energy
• Low carbon electricity
• Energy efficiency
• Fuel or feedstock switch
• GHG destruction
• GHG emission avoidance
• GHG removal by sinks

Final Carbon's portfolio includes all the above sectors and mitigation activities types.