Modalities and procedures
The Seventh Conference of the Parties (COP), held in Marrakech, Morocco, formulated a rulebook called the “Marrakech Accords” on the modalities for implementation of the Convention and its Protocol, including the CDM. The eligibility criteria for CDM projects include the following:
1. CDM project activities must be developed only through voluntary action.
2. Countries are required to ratify the Kyoto Protocol and establish a Designated National Authority (DNA) in order to participate in CDM.
3. CDM project activities must promote sustainable development in the host countries.
4. Funding for CDM projects from any Annex I Parties must not result in the diversion of official development assistance.
5. CDM projects are subject to stakeholder consultations and initial assessment of environmental impacts created by the project activities.
6. CDM projects must meet the “additionality” requirements, in terms of finance, investment, technology and environmental aspects.
7. All the processes involving the development of a CDM project must be transparent, efficient and accountable, under independent auditing and verification.
According to the above prerequisites, non-Annex I Parties wishing to participate in the CDM are required to establish the Designated National Authority for the CDM (DNA). As for Thailand, the Thailand Greenhouse Gas Management Organization (Public Organization) or TGO is performing its role as the country’s DNA. Its main responsibilities is to formulate the necessary procedures to review and approve CDM projects for the issuance of the Letter of Approval (LoA). It also establishes necessary criteria for evaluating whether or not the candidate CDM projects will lead to economic, social and environmental benefits and are in agreement with the national sustainable development policy.