GHG Reduction Project / CDM Project Approval

CDM Project Approval

1. Approval

Under operational criteria in the Kyoto Protocol, the Clean Development Mechanism (CDM) project must assists hosting country to achieve the sustainable development objectives. Therefore, project proponent should submit request for Letter of Approval (LoA) from the Designated National Authority (DNA) in the host country of CDM Project; and confirm that the requested project is by voluntary action and contributes the sustainable development.

The LoA is required upon the registration of CDM project by the CDM Executive Board (CDM EB).

Thailand Greenhouse Gas Management Organization (Public Organization) or TGO as a Thailand Designated National Authority (DNA) has a role to review and approve CDM Projects for the issuance of LoA. TGO defines the Sustainable Development Criteria (SD-Criteria) into four groups: Natural Resources and Environment, Social, Technology Transfer and Economic. Under each index group of the SD-Criteria will be defined by project characteristic, the main project types are general related, transportation, forestry and PoA. The approved CDM project must meet the SD-Criteria determined by TGO. 

 

2. Sustainable Development Criteria

Sustainable Development Criteria (SD Criteria) is the criteria used in CDM project issuance. As for today, Thailand develops three SD Criteria in accordance to project type, which are: General CDM Project; CDM in Transport Sector; and CDM in Forestry Sector. 

As an indication that project activity contributes to the Sustainable Development of the host country, for project to be considered as a CDM project the project must have a positive score in each group of criteria and the total score must be positive.

TGO shall reject the request for project issuance if project operations are not in line with the laws or determined standards or inadequent measures. Implementation of such project will be considered against the law.

 

3. Approval process

Letter of Approval (LoA) for the CDM project is authorized by TGO in accordance with TGO Board of Directors Regulations on Clean Development Mechanism 2010 (B.E. 2553). The approval and appraisal processes take 180 working days upon submission of the request and all required documents.

 The steps require in the submission of request

  1. Project proponent submits the request together with all required documents in accordance with the regulation.
  2. TGO conducts initial document screening to check completeness and shall inform project proponent within 20 working days – counting from the submission date.
  • In scope of return project

In accordance with the scope of TGO Board of Directors Announcement on the issuance of Clean Development Mechanism Project 2008 (B.E. 2551), project proponent must revise project documents and resubmit the documents again and the date that TGO received the revised documents shall be considered as a request date.

  • In case of inadequate information and additional information is required

Project proponent must submits (i) Additional Information Report (5 copies) and (ii) Electronic copy of the document in CD (5 copies).

  • When Submission of all documents is completed, next step can be preceded.  
  1. TGO distributes the above documents to relevant agencies. Those agencies are requested to assess whether or not project has conflict with their regulations.
  2. TGO presents to Sub-committee on CDM for comment before submit to TGO Board of Directors to approve/disapprove the request within 180 working days – counting from the requested date.
  • In case the board or sub-committee considered and have comments or request for additional information or suggestions on operation. The project proponent should take action in accordance to the collective comments/inputs from the board and sub-committee and respond to TGO within 20 working days since the notified date. If proponent unable to follow the suggestions or have not submit any response within the given timeframe, TGO shall propose to the Board to cancel the issuance request.

 5. TGO informs the result to project proponent and submits the LoA for signing by the Secretary General of Ministry of Natural Resources and Environment.

 

4. List of required documents for CDM project approval

 To get the CDM project status, project proponent must submit the required documents along with the request for Letter of Approval (LoA) in accordance to the cretiria set out in the regulations by TGO Board of Directors on Approval of Clean Development Mechanism Project 2010 (B.E. 2553), as listed below:

 

- In case the EIA is not required*.

1. Project Design Document: PDD (5 copies).

2. Initial Environment Evaluation (IEE) and Self-Evaluation on Sustainable. Development of CDM Project in Thailand: IEE SD Report (5 copies).

3. Electronic copy of the above documents (1) & (2) in CD (10 copies).

4. A copy of Letter of Consent for Disclose Information.

 

Remark: * refers to project that fall into the scope of project type and size that requires to prepare an Environmental Impact Assesment Report in accordance with the notificaion by Ministry of Natural Resources and Environment under subject “Identification of project type and project size or activity that requiored to prepare environmental impact assessment” and “Criteria, procedure, regulation and guideline to prepare environmental impact assessment”. (More details are available at http://www.onep.go.th/eia).

 

5. Adding new CPA under the PoA

Background

In the regulations set out by TGO Board of Directors on Approval of Clean Development Mechanism Project 2011 (B.E. 2554), article 16, indicates that the coordinating/managing entity  (C/ME) must notify the addition of CDM Programme Activities (CPA) annually. Once the programme is registered by the CDM EB, the C/ME should provide addition CPA Design Document (CPA-DD) and shall report the operation results in accordance with the framework of environmental and sustainable development capacity.

TGO shall consider the completeness of documents and prepare a Letter of Acknowledgement for the addition CPA.

TGO requests the C/ME to prepare the following documents to ensure that all requirements for the issuance of the Letter of Acknowledgement of a new CPA are in line.  

Documents

Form

1. A copy of Letter of intent to include another CPA together with cover letter for the request of Letter of Acknowledgement

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2. A copy of CPA-DD per one CPA

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3. A copy of Report in accordance with Environmental and Sustainable Development Capacity Framework per one CPA

Report Guideline

4. Electronic copy of the above documents in CD (3 copies)

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6. Project Approval Fee

Fee for an analysis, validation and monitoring project results:

  1. 75,000 Bht fee for GHG Emission Reduction Project that reduce less than 15,000 ton CO2 or equivalent
  2. For GHG Emission Reduction Project that reduce more than 15,000 ton CO2 or equivalent, the fee is 10 Bht per 1 ton CO2  but not more than 900,000 Bht per project.

 

The reduced GHG must be in accordance with the details in PDD.  From 22 November 2012 (B.E. 2555) onwards, project proponent must be accounted for 7% Vat. for each transaction fee on project approval.

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