Certified Emission Reduction units
Certified Emission Reductions
issued by host parties
In order to qualify for the CDM, activities have to ensure that the emission reductions are strictly additional and that they contribute to sustainable development in the host country. Emission reductions created through CDM projects are considered to be of very high quality due to the strict requirements to be approved under the CDM and which is ensured by quality control and independent third party evaluation. However, since the cost to certify and meet all the criteria are considerable, the price for an offset unit created under the CDM is often more expensive than outside the compliance market.
All project types are in general eligible to be certified as CDM (under the precondition that they are located in Non-Annex I countries) and lead to re
(”Additionality” means the projects must achieve cuts in emissions that would not have happened otherwise. If a scheme to cut air pollution also brings about a reduction in GHG emissions, for example, then the cut would have occurred anyway, as a by-product, and there is no additionality. To try to avoid giving credits to projects like this (“free riders”), there are some rules which try to ensure the project does in fact reduce emissions more than would have happened in any case.)