Guidance

Clean Development Mechanism (CDM) and Joint Implementation (JI) projects: how to apply

How to apply for a letter of approval from the Environment Agency to participate in CDM and JI projects.

CDM is a mechanism under the Kyoto Protocol. It allows emission reduction projects in developing countries to earn certified emission reduction (CER) credits, each equivalent to one tonne of CO2. CERs can be traded, sold and used by industrialised countries to meet part of their emission reduction targets under the Kyoto Protocol.

JI is also a mechanism under the Kyoto Protocol. It allows countries with an emission reduction or limitation commitment under the Kyoto Protocol to earn emission reduction units (ERUs), each equivalent to one tonne of CO2. ERUs can be traded, sold and used by industrialised countries to meet part of their emission reduction targets under the Kyoto Protocol.

Companies wishing to participate in CDM or JI projects must get a letter of approval from the Environment Agency.

Who can apply

Any company can apply, except for those based in certain UK Overseas Territories. Applications from these companies must be made by a branch or office of that company based outside the UK Overseas Territory.

Companies can only apply for a letter of approval from the Environment Agency after they have gained approval from the host country where the project is based.

Information you must provide

All applications must include the:

  • project design document in the correct UNFCCC template
  • signed letter of approval from the host country where the project is based
  • signed declaration of compliance from the company using the company’s headed paper
  • proof of legal entity of the project participant (signatories must be company authorised)
  • application fee

All documents must be in English unless you can provide certified copies of English translations.

The project title must be consistent across all documents.

If a project is located in a non-Annex B country in the EU, the project baselines must comply with EU requirements as outlined in the acquis communautaire.

Application fee

JI projects and large hydroelectric power projects: £700 (VAT exempt).

All other CDM applications: £250 (VAT exempt).

How to pay

Debit/credit card

Debit/credit card payments must be made by telephone. Request a call back from the Environment Agency helpdesk on +44 (0)1925 542 594.

There are no card transaction fees. Debit/credit card payments cannot be made by email.

Bank transfer (BACS/CHAPS)

To transfer your fee use these details:

  • beneficiary name: Environment Agency
  • account name: EA RECEIPTS
  • bank: RBS/Natwest
  • IBAN: GB23NWBK60708010014411
  • SWIFT: NWBKGB2L
  • sort code: 60-70-80
  • account number: 10014411
  • reference: ETS/CDM/APP followed by the company name, or acronym if space is limited

Submit your application

CDM applications must be emailed to cdm@environment-agency.gov.uk

JI applications must be emailed to JI@environment-agency.gov.uk

Additional application requirements

Some project types have additional application requirements.

Projects in more than one country

If the project is located in more than one country, you must provide a letter of approval from each host country.

You must also provide a programme activity design document for each individual project activity covered by the overall programme of activity.

Large hydroelectric power projects

If the installed capacity of the project exceeds 20MW you must provide the:

How long it takes

If your application is successful, it may take the Environment Agency 2 months from receipt of a fully completed application and after payment has cleared before they will issue a letter of approval. This does not include any time where they are waiting for information from you.

Large hydropower project applications will take longer to assess. The Environment Agency will contact you to advise if an extension is required.

Restrictions

The UK is obliged to respect EU regulations prohibiting the use of carbon credits generated from projects involving certain types of greenhouse gas.

The Environment Agency is unable to consider applications for some projects, as declared in the policy statement document.

Right of appeal

The Environment Agency reserve the right not to approve an application.

If you’re not happy with the Environment Agency’s decision you have a right of appeal to the General Regulatory Chamber of the First Tier Tribunal.

You must lodge your notice of appeal and supporting documents with the First Tier Tribunal within 28 days of receiving the Environment Agency’s decision.

See full details of the appeals process.

Contact

For CDM enquiries email cdm@environment-agency.gov.uk

For JI enquiries email JI@environment-agency.gov.uk

Request a call back from the Environment Agency: +44 (0)1925 542 594

For more information about CDM and JI see the UNFCCC website.