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:

1. 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;
2. The requirements for the project design document are reduced;
3. Baseline methodologies by project category are simplified to reduce the cost of developing a project baseline;
4. Monitoring plans are simplified, including simplified monitoring requirements, to reduce monitoring costs;
5. 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).