Carbon Credits Requirements
The term " Carbon Credit " is a synonym for " CER ", which stands for Certified Emission Reductions and is the currency issued for emission reductions from registered Clean Development Mechanism (CDM) projects in developing countries.
Development and sale of high quality CER is the principal business focus of Q.C.A..
CERs issued by CDM executive board (EB) can be used by companies in industrialized countries to comply with their emission reduction obligations. To get CER issued, projects have to meet various requirements.
Besides the policies defined in the Kyoto Protocol, Q.C.A. also aims to meet the voluntary requirements of the Goldstandard Organization. A comparison of the eligibility criteria of the CDM and the Gold Standard is provided belo W:
General requirement for project qualification:
1. GHG emission reduction.
Measurable and long term reductions of any of the six GHG gases(CO 2, CH 4, N 2O, HFCs, PFCs and SF ) 6
2. Additionality .
Not a business-as-usual scenario and meet the reduction additionality using the UNFCCC’s Additionality Tool.
CDM projects must promote sustainable development in the host country.
1. GHG emission reduction .
Only three eligible Green House Gases-Carbon Dioxide (CO 2 ), Methane (CH 4 ) and Nitrous Oxide (N 2 O) are eligible.
2. Additionality .
More conservative requirement including the small-scale project. Also must result in technology transfer and/or knowledge innovation.
3. Sustainability .
A net-positive contribution to actual sustainable development is needed .
Eligible Project types
All meet the criteria above minus REDD, new HFC &nuclear
· Renewable energy - Wind; Solar; biomass; hydro; geothermal
· Power Generation - Combined Cycle turbines; distributive networks; clean coal technology
· Fuel Switching - Natural gas; methane; biomass and biogas; hydrogen
· Cogeneration & Sugarcane
Commercial / Household
· Conservation - Lighting, solar water heaters, energy efficient equipment
· Efficiency - Boilers; motors; lighting
· Cogeneration - chemical; paper; metallurgy; oil refining
· Waste Fuel Recovery - Including Landfills
· Alternative Fuel Vehicles
· Mass transit systems
Projects that sequester carbon are restricted to afforestation and reforestation.
Only RE, EE are eligible project types under Gold Standard
· Solar thermal
· Ecologically sound biomass, biogas and liquid fuels
– Heat, electricity, cogeneration
· Small low-impact Hydro, maximum 15MW
End Use Energy Efficiency Improvement
· Industrial energy efficiency
· Domestic energy efficiency
· Energy efficiency in the transport sector
· Energy efficiency in the public sector
· Energy efficiency in the agricultural sector
· Energy efficiency in the commercial sector
End Use energy effciency is defned as the reduction in the amount of energy required delivering or producing non-energy physical goods or services.
Should you have any further questions, please refer to UNFCCC and Gold Standard .