Advantages of registration as a small-scale project
Registration as a small-scale project entitles project participants to use the simplified modalities and procedures set out in 4/CMP.1, Annex II:
For small-scale CDM project activities meeting the criteria specified in decision 17/CP.7 and relevant decisions by the COP/MOP, project participants may use simplified modalities and procedures for small-scale projects (3/CMP.1, Annex, paragraph 55).
In particular, small-scale projects may:
- Be bundled or portfolio bundled;
- Use a simplified project design document (CDM-SSC-PDD);
- Use simplified baseline methodologies;
- Use simplified monitoring plans with reduced monitoring requirements; and
- Engage the same designated operational entity (DOE) to undertake validation, verification and certification.
These advantages are set out in 4/CMP.1, Annex II, paragraph 9:
Small-scale CDM project activities shall follow the stages of the project cycle specified in the modalities and procedures for a clean development mechanism contained in the annex to decision 17/CP.7 (hereinafter referred as the CDM modalities and procedures). In order to reduce transaction costs modalities and procedures are simplified for small-scale CDM project activities, as follows:
- Project activities may be bundled or portfolio bundled at the following stages in the project cycle: the project design document, validation, registration, monitoring, verification and certification. The size of the total bundle should not exceed the limits stipulated in paragraph 6 (c) of decision 17/CP.7;
- The requirements for the project design document are reduced;
- Baseline methodologies by project category are simplified to reduce the cost of developing a project baseline;
- Monitoring plans are simplified, including simplified monitoring requirements, to reduce monitoring costs;
- The same operational entity may undertake validation, and verification and certification (4/CMP.1, Annex II, paragraph 9).
The rule that the same DOE may undertake validation, verification and certification is also set out in paragraph 20:
A single designated operational entity may perform validation as well as verification and certification for a small-scale CDM project activity or bundled small-scale CDM project activities (4/CMP.1, Annex, paragraph 20).