Projects

In order for a project to be approved by the UN and generate carbon credits, certain predetermined criteria must be fulfilled, such as:

• The host and investor country’s participation in the project is voluntary
• The emission reductions are real and measurable and contribute to sustainable development
• The emission reductions are additional to what would have occurred in the absence of the project activity
  

To meet the first criteria, the project must obtain approval from the DNAs (Designated National Authorities) in both the host and investor countries.

The second criteria is based on an explanation of increased sustainable development and on the following equation:

ERy = BEy - PEy - LEy

ERy     Emission reductions in year y
BEy     Baseline emissions in the absence of the project activity in year y
PEy     Project emissions in year y
LEγ     Leakage emissions in year y

The third criteria is additionality and it is the core of the regulation for CDM/JI projects. This critiera is based on the fact that one cannot account the emission reduction as carbon credits if the reductions would have occurred in the absence of the project activity. In other words the project would not have happened without the additional incentives of carbon credits sales.

Tricorona's experience as a carbon financer can be found in our list of projects.