CDM Navigator
Certified Emission Reductions (CERs) issued by the Clean Development Mechanism (CDM) Executive Board for verified emission reductions from approved and registered CDM projects could be used by companies to fulfil their emission reduction or limitation obligations according to national legislation or could be sold on a market. CERs are eligible commodities in the EU emission trading system from 2005.

The rules for the CDM approval process are anchored in the Marrakech Accords approved by Conference of Parties to the UN Framework Convention of Climate Change. The approval of projects is based on the principles of case law principles. The process is highly complex however and is evolving quickly. This presents a significant hurdle to the development of CDM projects. The purpose of this website is to provide guidance for companies, in particular within the petroleum sector, considering submitting emission reduction projects for approval as CDM projects. The website provides access to up-to-date guidance on the approval processes of the CDM as well as information of specific relevance to the development of oil and gas sector emission reduction projects.

Background resources
The IETA guidance on the CDM project approval process provides overarching generic guidance to the CDM approval process, and translates an increasingly complex process into simple generic guidelines. The objective is to give a basic understanding of the CDM, the institutions and actors and the CDM project approval cycle and contains linkages to resources essential in development of project proposals.

The official UNFCCC CDM website houses all the official information and documentation regarding the processes and procedures of the CDM.

Various CDM resources are available from the UNFCCC CDM website. They are a collection of decisions, reports, procedures, guidance, clarifications, tools and forms relating to the CDM.

The latest version of the CDM Project Design Document is also available from the UNFCCC CDM website.

Based on the Kyoto Protocol, the Marrakech Accords and relevant CDM Executive Board decisions a Validation and Verification Manual has been developed for the use of validation and verification of greenhouse gas (GHG) reduction projects. Its purpose is to serve as a tool for third party validators/ verifiers, but also provides useful information for project developers.

For successful participation in CDM, having a verifiable GHG inventory is essential for the development of an appropriate baseline. See the 'Measuring and reporting' area of the IPIECA website for more details.

Oil and Gas Industry CDM project activities / families reference
There are 5 different identified sets of activities which could potentially be eligible under the CDM, outlined further below:

• Gas flaring reduction
• Carbon dioxide capture and geological storage
• Energy efficiency
• Fuel switching
• Cogeneration

Gas Flaring Reduction
The reduction of the flaring and venting of gas associated with the extraction of crude oil minimizes the wastes of a resource and contributes to reducing anthropogenic GHG emissions.

• Emission Reductions in the Natural Gas Sector through Project-Based Mechanisms - IEA information paper
• UNFCCC Approved methodology AM0009: Recovery and utilization of gas from oil wells that would otherwise be flared
• UNFCCC Not approved Methodology NM0049: Waste heat recovery from BOF Gas

Carbon Dioxide Capture and Geological Storage
CO2 Capture and Storage is the capture of CO2 from large stationary sources, its transportation to an appropriate injection site where it is pumped into underground geological formations. This technology is not yet approved for consideration as a CDM activity.

• Carbon Dioxide Capture and Storage Issues – Accounting and Baselines under the UNFCCC - IEA information paper

Energy Efficiency
Improving the efficiency of operations can enhance the economics of those operations conserve scarce resources and mitigate GHG emissions.

• UNFCCC approved methodology AM0017: Steam System Efficiency Improvements

Fuel Switching
Switching to fuels with a lower carbon content for power production for example from coal to oil or gas and oil to gas can contribute to significant emissions reductions.

• UNFCCC approved methodology ACM0009 : Consolidated methodology for industrial fuel switching from coal or petroleum fuels to natural gas --- Version 3.2
• UNFCCC methodology under consideration NM0062: APCL Electricity Generation Project with cleaner fuel

Cogeneration
This means that a fuel, usually natural gas, is used directly in a large power turbine that generates electricity for running the plant. The hot gases emitted from the turbine can then be used to produce hot water and steam, required to transform raw materials into consumer products, without consuming other fuel for that purpose.

• UNFCCC approved methodology AM0014: Natural gas-based package cogeneration
• UNFCCC methodology under consideration NM0031-rev: OSIL baseline methodology for electricity generation projects from utilization of waste heat from waste gases
• UNFCCC methodology under consideration NM0031-rev2: OSIL - 10 MW Waste Heat Recovery Based Captive Power Project