Emission reductions exceeding small-scale limits

Small-scale project activities are required to stay under the emission reductions limitations for the relevant project type every year for the life of the crediting period (EB 20, paragraph 58(a)).  Where small-scale project activities exceed these limits, they will only be eligible to claim certified emission reductions (CERs) up to the maximum value:

The Board agreed that if the maximum reference value of a small-scale CDM project activity is exceeded on an annual average basis during any verified period, certified emission reductions (CERs) should be issued only up to the maximum value (4/CMP.1, Annex II, paragraph 8).

The Executive Board has further clarified this rule:

1. If a project activity goes beyond the limit of its type in any year of the crediting period, the emission reduction that can be claimed by the project activity during this particular year will be capped by the maximum emission reduction estimated in the CDM-SSC-PDD by the project participant for that year during the crediting period.
2. Project participants shall demonstrate in the CDM-SSC-PDD that the project activity characteristics are defined in a way that precludes project activities to go beyond the limits:
   1. For type I: project participants shall provide proof that the installed capacity of the proposed project activity will not increase beyond 15 MW;
   2. For type II: project participants shall provide proof that the efficiency improvements do not exceed the equivalent of 15 gigawatt hours per year every year throughout the crediting period;
   3. For type III: project participants shall provide an estimation of emissions of the project activity over the crediting period and proof that the emissions every year will not go beyond the limits of 15 ktCO2e/y over the entire crediting period.
3. Project activities using a renewable crediting period shall reassess their compliance with the limits at the renewal of the crediting period (EB 20, paragraph 58(b)-(c)).

This decision should be read as referring to the new limits for small-scale projects established by 1/CMP.2.