To be eligible to participate in a CDM project, an entity must have obtained a letter of approval from a Party to the Kyoto Protocol. In the case of the non-Annex I Party seller/project owner, this letter of approval will be from the host Party; in the case of the Annex I buyer, it will be from the Annex I Party authorising the buyer's participation in the project.
These letters of approval are a requirement for validation and registration of the project:
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 proposed small-scale afforestation or reforestation project activity under the CDM assists it in achieving sustainable development (6/CMP.1, Annex, paragraph 15(a)).