Project eligibility and purpose
The CDM enables developing countries to generate certified emission reductions through eligible projects - promoting clean development while contributing to global climate targets.
Eligibility criteria
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1
GHG reduction - Covers emissions under the Kyoto Protocol: CO2, CH4, N2O, SF6, HFCs, and PFCs.
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2
Host country party status - Rwanda must be a Party to the Kyoto Protocol.
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3
Sustainable development - Must contribute to Rwanda's sustainable development goals.
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4
Additionality - The project must demonstrate it would not have occurred without the incentive from CDM revenue.
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5
Real, measurable, and long-term - Emission reductions must be verifiable and durable over time.
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6
Eligible sector - Nuclear energy is not eligible. In the land use, land change, and forestry sector, only afforestation and reforestation projects qualify.
Purpose of the CDM
Scope
Clean development in non-Annex I countries
The CDM promotes clean development in developing countries not listed in Annex I of the Framework Convention - giving them access to climate finance and technology.
Mechanism
Project-based emission reductions
As a project-based mechanism, the CDM is designed to incentivise and credit specific projects that demonstrably reduce greenhouse gas emissions.
Credits
Developing countries earn credit
Developing countries gain credit for emission cuts produced by CDM projects. These reductions are verified and certified, unlocking value in the international carbon market.
How the baseline works
Emission reductions are measured against a hypothetical baseline - the emissions predicted to occur in the absence of the CDM project. Credits are issued for the verified difference between actual emissions and this baseline.