should I use?
A CDM Clean Development Mechanism : Offsetting mechanism instigated by the Kyoto protocol and governed by UN rules go to glossary project must be registered with the UN and based on one of the 210 methodologies approved by the UNFCCC United Nations Framework Convention on Climate Change go to glossary . It is possible to suggest a new methodology but this will mean additional costs.
If your project is carried out on a voluntary basis, you must at least adopt voluntary carbon certification (VCS, Gold Standard, etc).
Consult our page dedicated to voluntary carbon project standards.
A voluntary project may suggest and argue in favour of a new methodology Method used to calculate the GHG savings achieved through the project go to glossary
How many carbon credits
will I generate?
It’s your baseline scenario Quantity of GHG that would have been emitted in the absence of the project activities t. go to glossary which will define the number of tonnes CO2–eq that will be avoided, i.e. the number of carbon credits your project will deliver.
We recommend a minimum of 5000 tCO2e per year for 7 years to cover the project’s fixed costs. This quantity of CO2 avoided by your project will determine your room for manoeuvre as regards the sale price of your credits.
will this cost me?
The fixed costs of a carbon project relate to validation of the PDD Project Design Document : Technical document containing the essential, detailed information on the project. It is validated by an independent auditor and made public. go to glossary (around €20,000), annual verification of the project by an auditor (around €25,000), opening a registry and the costs associated with carbon credit transactions (around €5000).
On top of this come the variable costs according to the type and place of implementation of your project: gathering the necessary data to find out the precise quantity of CO2 avoided, implementing the monitoring system, marketing the carbon credits, communications, etc.
In total, the cost of access to carbon finance for your project is a minimum of €150,000 (from the eligibility study through to the sale of the carbon credits).
Is my projet
This is one of the key conditions determining the eligibility of your project! You must prove that the CO2 savings could not have happened without your project (having regard to political, cultural and regulatory constraints). You must also prove that the income from the sale of the carbon credits will balance your budget.
should I put on my carbon credits ?
It’s the quantity of CO2 emissions avoided and the overall costs of your project that will determine the cost price of your carbon credit.
> Total project cost/number of carbon credits = cost price of a carbon credit.
In principle, the longer the project continues, the more the quantity of CO2 increases and the further the project development costs fall. As a result, the project owner will have more room for manoeuvre in negotiating the sale price.
shall I selle my carbon credits?
Your carbon credits, whether already generated (CO2 savings have been made) or in the process of generation (CO2 emissions are being avoided), can be sold essentially through two channels.
Two sales channels
Direct retail sale to end buyers. This option implies a minimum sales and marketing force but helps to secure a better selling price. In this case, you retire Action consisting of cancelling a carbon credit from its registry go to glossary the carbon credits from your registry.
Sale to intermediaries, i.e. to brokers or carbon offset operators. Although the volumes sold may be substantial, the price is often low. In this case, you transfer credits in your account to the buyer’s account.
A note of caution
A carbon offset project must meet the following minimum requirements:
- PDD Project Design Document : Technical document containing the essential, detailed project information. It is validated by an auditor and made public go to glossary validated by an independent auditor
- Public registry
- Annual verification of CO2 savings by an independent auditor
- Standard certification
If these criteria are not met, use of the term offsetting may be challenged.
If you still have questions despite this guidance, we shall be happy to answer them by e-mail via firstname.lastname@example.org.
You may also contact us directly through our dialogue box.
As carbon finance is a real specialist area, we recommend that you get advice and support from professionals.