Pro.EduChild is a purely humanitarian project which aims at providing children all over the world with education facilities and medical aid. Hence, the goal is to establish a school or a kindergarten class or the rendering of medical aid, respectively.
1. Process Steps and Their Duration
Depending on your project’s size and complexity it will take several months (approx. 6 to 9 months) to pass the necessary UNFCCC procedural steps. This long process period is quite short in comparison to the project’s overall time scope of!
Delays in the process cycles are often caused by lack of technical descriptions on the client's side!
Our intention is to keep the process cycles which can be influenced by us as short as possible! It is your most important task to feed the PDD creation with appropriate data in time! Thus, an optimized process cycle can be achieved! In compliance with the UNFCCC procedure enhanced by our experts experience the following steps should be passed:
Get a sound data base for your decision whether to start a UNFCCC project or not!
Even not mandatory we believe that the Project Idea Note (PIN) Phase is a very good starting point of the whole UNFCCC process. The PIN aims at evaluating and calculating your projects CO2 emission reduction potential. Hence, it forms a sound decision base for you as an investor and project initiator. The PIN phase normally takes 1 month, for large and highly complex projects it might be 2 months.
By collecting all relevant technical data and calculating the emission reduction potential your project also benefits from technological input as alternative technologies with higher reduction potential and reduced operative costs!
The Project Description Document (PDD) Phase is the most crucial step in the whole process! It is based on the PIN phase and refines the collected data by detailed descriptions of the technology base to be used. Furthermore, it describes and evaluates the Baseline scenario and the Monitoring Plan. The latter is a very important factor in the PDD as it explains in detail how the emission reductions are to be measured over time!
The next step in the UNFCCC procedure is the approval of the PDD by the local UNFCCC agency called Denominated National Agency (DNA). This Letter of Approval must confirm that (1) the project activity contributes to sustainable development in the country, that (2) the country has ratified the Kyoto Protocol, and (3) that participation in CDM is voluntary. It is then submitted to CDM Executive Board to support the registration of the project.
DNAs have additional roles to play, such as the submission of proposed standardized baselines for their country, among others. These responsibilities have increased as the CDM has evolved.
A Designated Organization Entity (DOE) under the CDM is either a domestic legal entity or an international organization accredited and designated (on a provisional basis until confirmed by the CMP) by the CDM Executive Board. It has two key functions:
Registration is the formal acceptance by the Executive Board of a validated project as a CDM project activity. Registration is the prerequisite for the verification, certification and issuance of CERs related to that project activity". (Source: UNFCCC Website, 2014)
After a registration request is submitted by the DOE and the registration fee is paid, the secretariat endeavours to begin the registration process as soon as possible. The first step is the completeness check, scheduled for 7 days, followed by the information and reporting check, scheduled for 23 days. The relevant check lists may be viewed here.
Source: UNFCCC Website, 2014.
By selling your achieved carbon emission reduction (CERs) units at one of the dedicated carbon stock exchange funds your project's activities.
2. Risk Analysis from an Investor's Perspective
The major risk potential from an investor’s point of view is that the return on investment may not pay off the initial costs. Some prominent risks and means to avoid them shall be briefly focused below.
The UNFCCC process imposes a set of costs on the project initiator which shall be taken into consideration when you are planning to engage in the UNFCCC process cycle.
If your project's emission reduction potential is little
the whole UNFCCC process may not pay off for you!
Most problems are caused by lack of inappropriate documentation.
There is a certain possibility that your project is being rejected by the Executive Board.
The majority of rejected projects are marked with “lack of documentation”. This means that the PDD (Project Description Document) which is being filed in at the Executive Board lacks substantial technical, social or environmental related information!
The price for a carbon credit is being determined at several stock exchanges worldwide.
Thus, there can be fluctuations.
In December 2013 prices range between approx. EUR 0,7 and EUR 13,-, depending which form of certificate is being traded. The price applicable depends on the type of your project and on the quality and the efficiency enhancement your project can achieve. In the end your project has to be attractive to those who buy your CO2 reduction certificates!
Due to emerging requests and the considerable amount of information on the topics UNFCCC, UNFCCC Consultancy and UNFCCC environment preserving projects we decided to aggregate all data into a new separate site. We do hope that you like our compilation concerning the ever changing subject Climate Change! If you lack any information please do not hesitate to contact us!
> > >
Based on the Kyoto Protocol Accord 2005 the UNFCCC (United Nations Framework Convention on Climate Change) supports environmental saving projects via non-refundable financial support realized by Carbon Credit trading!
Under the Clean Development Mechanism, emission-reduction projects in developing countries can earn certified emission reduction credits.