Preparing a PDD involved estimating your green house gas emissions from your project, reference scenarios and leakages. The PDD has to then build an argument to show that funds from CDM are needed for the project to go forward. This step is what attracts the high fees for PDD development.

2. APPLY FOR GOVERNMENT APPROVAL
In India, National CDM authority clears sustainable development criteria for projects, usually within 60 days.

3. CHOSE AN EXISTING BASELINE/METHODOLOGY OR PROPOSE A NEW ONE.
If the project is a first of it’s kind then it will probably have to propose a new methodology. (If an approved project methodology applies to the project, proceed to step 4)

Cost : 30,000 Euro.

Proposing a new methodology is a time consuming process. Consultants charge a lot more for projects that require a new methodology.

The new methodology is reviewed by a panel of experts constituted by the Executive board called the "Methodologies Panel" before final board approval. This process can take 12-18 months to get approved.

4. Hire a Designated Operation Entity for Validation

Cost: 7000-15,000 Euro

There are 11 DOE’s worldwide and 5 operation in India. They review the projects to make sure they fulfil CDM criteria, and act as a intermediary between the project developer and the Executive Board. After the DOE clears the project it submits a request for registration to the UNFCCC Executive Board.

5. Wait for Approval from the Executive Board

Cost : 4,000-25,000 Euro

The CDM Executive Board meets 4-5 times a year, and is charged with giving final approval or registration to projects.

6. Hire a Designated Operational Entity for Verification

Cost : (not known)