Carbon Credits Generation

Emission reduction projects. Clean development mechanism (CDM) and joint implementation (JI)

The Kyoto Protocol introduced flexibility to achieve assigned emissions targets, allowing countries to achieve some of their compromises of reduction through the reductions generated in countries with economies in development (CDM projects), and in countries with economies in transition (JI projects).This instrument can be used by companies, however, it has certain limitations, because these mechanisms must be supplementary to the effort of emissions reduction on production activities that companies must implement.

These projects generate an additional saving of emissions that would have occurred in the case of using conventional technologies. The obtain reductions are certified. These certified emissions are called CERs for CDM projects and ERUs for JI projects and can be commercialized and purchased by countries with commitments to reduce. The income derived from the commercialization improves the viability of the project.

Zeroemissions promotes and takes part in clean development mechanism. CDM

The mechanism for clean development (CDM) objective is to help countries in development to achieve a sustainable development and to contribute to achieve the Convention's objective, as well as helping developed countries to implement their commitments of quantified limitations and reduction of emissions contracted.

Developing countries would benefit from the project activities which result in certified emission reductions; and
Developed countries may use the certified emission reductions resulting from such project's activities to contribute to compliance with part of their quantified limitation and reduction of emissions contracted.

Requirements

CDM project must be developed in a non Annex I country and must have ratified the Kyoto Protocol.
The project should be later than January 1 ^st , 2000, generating credits since the registration of the application.
The project must be additional, that is to say, the project wasn't done in the absence of this economic incentive that involves the sale of reductions obtained and certified using new technologies.

Steps to go through to achieve the commercialization of reduction of emissions.

Request for acceptance as a CDM project according to the Project Design Document (PDD).This document includes a technical description of the project; describe the methodology of determination of the adicionality based line, the reduction of emissions. And the plan for monitoring and verification of actual emissions and leaks.
Authorization PDD by investor and recipient countries in their respective designated national authority. Letters of approval of the host country and voluntary participation of the issuer country, issued by the designated national authorities in each country (DNA)
Validation of the PDD by the designated operational entity (DOE) accredited by United Nations.
Registration on the executive board of the United Nations (EB).
Monitoring, verification and certification by the designated operational entity (DOE) on the CDM premises.
Issuing of certificates of emissions reduction by the executive board of United Nations (EB).

Zeroemissions carries out the whole process from the project feasibility study, preparation of documentation, its registration in United Nations up to the commercialization of certified emissions reduction.

How the relationship with Zeroemissions develops?

.
Zeroemissions analyzes the information and its interest in the project.
Zeroemissions sends an offer.
Signing of intentions letters on behalf of the promoter. LOI.
Signing of a buying and selling agreetment of emissions reduction ERPA with ZET about the buying of all the emissions rights generated during the life of the project.
Duration of about 40 months.

What are the advantages of having Zeroemissions as a partner in a CDM project?

Zeroemissions is a partner from the beginning of the project until the certificates of emission reduction are issued. Zeroemissions goes along with the project at all times and it can do it economically viable .As well, in case of need if necessary, it can contribute with the range of technological solutions from Abengoa.

The fact the project becomes CDM and an additional cash flow turn up, it means there isn't any capital layout on behalf of the project promoters, minimizing the risk of the project.

Zeroemissions has a wide experience in Abengoa about a huge range of projects, including: renewable energies, management of waste or industrial efficiency.

Solutions