What is the letter of approval?
A written approval constitutes the authorization by a designated national authority (DNA) of specific entity(ies)' participation as project proponents in the specific CDM project activity (EB 16, Annex 6, paragraph 2(c)).
Obtaining a letter of approval is a requirement for registration of a project activity under the CDM:
Before entry into force of the Kyoto Protocol, all Parties to the Convention may participate in CDM project activities. In accordance with provisions of paragraphs 37 (a) and 40 (a) of the CDM modalities and procedures, the registration of a proposed CDM project activity can, however, only take place once approval letters are obtained from Parties to the Convention that have ratified the Kyoto Protocol (EB 8, Annex 3, paragraph 2(a)).
A letter of approval is also listed as a required document to be attached to a request for registration when submitted by a DOE:
The 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 (F-CDM-REG).
Note: Whilst EB 54, Annex 28 has replaced EB 8, Annex 3, the previous procedures remain informative and may provide guidance where the new procedures are otherwise silent.
The designated operational entity (DOE) must receive documentation of the approval from project participants and, if it determines the project activity to be valid, submit the written approval to the Executive Board together with the request for registration. This requirement is set out in 3/CMP, Annex, paragraph 40(a) and (f):
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 assists it in achieving sustainable development; ...
- Submit to the Executive Board, if it determines the proposed project activity to be valid, a request for registration in the form of a validation report including the project design document, the written approval of the host Party as referred to in subparagraph (a) above, and an explanation of how it has taken due account of comments received (3/CMP.1, Annex, paragraph 40(a) and (f)).
The Executive Board has confirmed that the written approval described in EB 16, Annex 6 will satisfy the requirements of 3/CMP.1, Annex, paragraphs 40(a) and (f) above:
The approval covers the requirements of paragraphs 33 and 40 (a) and (f) of the CDM modalities and procedures (EB 16, Annex 6, paragraph 2(b)).