Renewing the crediting period
The Procedure for renewal of a crediting period of a registered CDM project activity (Version 6) was adopted at EB 63, Annex 29. This replaces earlier guidance at EB, 46, Annex 11 (Version 5), EB 43, Annex 13 (Version 4), EB 36, Annex 43 (Version 3), EB 33, Annex 60 (Version 2) and EB 28, Annex 40 (Version 1).
A crediting period may be renewed if a DOE determines that the original baseline is still valid or has been updated:
Project participants shall select a crediting period for a proposed project activity from one of the following alternative approaches:
- A maximum of seven years which may be renewed at most two times, provided that, for each renewal, a designated operational entity determines and informs the Executive Board that the original project baseline is still valid or has been updated taking account of new data where applicable (4/CMP.1, Annex, paragraph 29(a)).
In order to apply for a renewal of the crediting period, project participants must update the PDD as follows:
Project participants shall update those sections of the project design document (CDM-PDD) relating to the baseline, estimated emission reductions and the monitoring plan using an approved baseline and monitoring methodology as follows:
- The latest approved version of a baseline and monitoring methodology, applied in the original CDM-PDD of the registered CDM project activity, shall be used whenever applicable;
- If a baseline and monitoring methodology, applied in the original CDM-PDD, was withdrawn after the registration of the CDM project activity and replaced by a consolidated methodology, the latest approved version of the respective consolidated methodology shall be used;
- If the registered CDM project activity does not meet the applicability criteria of the options provided for by a) or b), due to their revision or due to the update of the baseline, the project participants shall either select another applicable approved methodology or request, through the DOE, a deviation from an approved methodology for the purpose of renewal of the crediting period (EB 63, Annex 29, paragraph 2).
To demonstrate validity of the original baseline, an assessment of emissions that would have resulted from that scenario must be provided.
The demonstration of the validity of the original baseline or its update does not require a reassessment of the baseline scenario, but rather an assessment of the emissions which would have resulted from that scenario (EB 63, Annex 29, paragraph 3).
This updated PDD must then be forwarded to the DOE:
Project participants shall notify the secretariat, by email or through a dedicated web interface, of their intention to request a renewal of a crediting period of the registered CDM project activity by submitting an updated CDM-PDD and informing of their selection of a DOE, within nine to six months prior to the date of expiration of the current crediting period (EB 63, Annex 29, paragraph 4).
A new letter of approval is not required:
For the purpose of renewal of the crediting period it is not necessary to obtain a new letter of approval from Parties involved (EB 36, Annex 43, paragraph 4).
The secretariat will use best efforts to remind project participants that the crediting period is due for renewal, but ultimately it is the responsibility of the project participants to ensure this is done:
The secretariat will make the best effort to inform project participants in advance of the period for requesting renewal of the crediting period in accordance with the registered modalities of communication. It remains under the responsibility of project participants to ensure that all actions are taken in accordance with these procedures in a timely manner (EB 63, Annex 29, paragraph 6).
If notice to renew the crediting period is not received from project participants within 6 months of its expiry, CERs will not be issued for the period from the expiration date to the deemed renewal date:
If the notification of the intention to request a renewal of a crediting period is not received by the secretariat six months prior to the date of expiration of the current crediting period, the project participant shall not be entitled to the issuance of certified emission reductions for the period from the expiration date of the current crediting period until the date on which the crediting period is deemed renewed (EB 63, Annex 29, paragraph 6).
The DOE's opinion must address the validity of the original baseline, the impact of new policies and circumstances and the continued validity of the baseline:
The DOE's validation opinion shall assess the validity of the original baseline or its update through an assessment of the following issues:
- an impact of new relevant national and/or sectoral policies and circumstances on the baseline taking into account relevant EB guidance with regard to renewal of the crediting period at the time of requesting renewal of crediting period; and
- the correctness of the application of an approved baseline methodology for the determination of the continued validity of the baseline or its update, and the estimation of emission reductions for the respective applicable crediting period (EB 43, Annex 13, paragraph 7).
The request for renewal must be submitted using the F-CDM-REN form:
A DOE shall submit a request for renewal of a crediting period of a registered CDM project activity using the form "Renewal of the crediting period of a registered CDM project activity" (F-CDM-REN) along with the updated project design document and validation report (EB 63, Annex 29, paragraph 3).
Once the request has been submitted:
- The secretariat will check the documentation is complete;
- The secretariat will then make the request publicly available for a 4 week period; and
- If there is no request for review, the crediting period will be deemed to be renewed.
This is set out in EB 63, Annex 29, paragraphs 9-11:
9. Upon receipt of a request for renewal of a crediting period of the registered CDM project activity the secretariat will determine whether all information and documentation requested in the FCDM-REN form has been provided by the DOE.
10. Once the secretariat has determined that the request is complete it shall be made publicly available through the UNFCCC CDM web site for a period of four (4) weeks. The secretariat shall announce a request for renewal of a crediting period of the registered CDM project activity on the UNFCCC CDM web site and notify the requesting DOE, the project participants and the Designated National Authorities.
11. Unless there is a request for review within four weeks after the publication of the request for renewal, the crediting period of the registered CDM project activity shall be< deemed renewed (EB 36, Annex 43, paragraphs 8-10).
The procedures applying to a review of registration, as modified, apply also to a review of a request to renew a crediting period:
The procedures to be applied for review of a request for renewal of a crediting period are set out in EB 63, Annex 20.
The renewed crediting period starts the day after the previous crediting period ends:
The start date of the renewed crediting period is the first day after the ending date of the previous crediting period (EB 63, Annex 29, paragraph 13).