The CDM Glossary of Terms (Version 03) defines a "Party involved" as follows:
A Party involved is a Party that provides a written approval (CDM Glossary of Terms, Version 03).
3/CMP.1, Annex, paragraph 40(a) requires that written approval be provided from each Party involved:
The designated operational entity shall:
- Prior to the submission of the validation report to the Executive Board, have received from the project participants written approval of voluntary participation from the designated national authority of each Party involved, including confirmation by the host Party that the project activity assists it in achieving sustainable development (3/CMP.1, Annex, paragraph 40(a), previously 17/CP.7, Annex, paragraph 40(a)).
In practice, there are usually two Parties involved (except in the case of unilateral CDM projects):
- the host Party (that authorises the participation of the project owner); and
- the Annex I Party (that authorises the participation of the Annex I buyer).
Each project participant requires a letter of approval which they will need to obtain from the relevant Party involved.