The executive board of the clean development mechanism (CDM) will either approve the projects, which are subject to a request for review, or put them under formal review, a procedure that could lead to eventual rejection.

Once again the majority of the projects under scrutiny are based in China, with the largest being a natural gas combined cycle power plant owned by Huaneng Nanjing Jinling Power Generation.

It is forecast to generate 3.1 million certified emission reductions (CERs) by 2013, worth around €36 million in today’s prices.

Credit Suisse and China-based Green Capital Consulting are named as project participants.

In addition, 36 projects will be formally reviewed, capable of producing almost 22 million CERs by 2013.

Twenty one of these are China-based hydro projects, five of which are being developed with the help of Misubishi Corporation.

The validation of 13 of the 36 projects, more than a third, was carried out by Tuev Sud.

The designated operational entity (DOE), responsible for carrying out checks on projects, is expected to learn this Friday whether the UN will suspend it from validating projects and verifying emissions after it was placed under a spot check by the board last year.

Fellow DOE Tuev Nord could also find out its fate this Friday after it was also subject to a UN spot check.

The two companies have a prominent role in the validation of projects, with Tuev Sud responsible for the validation of around 19 per cent of the 6,284 projects that have reached that stage, while Tuev Nord has validated around 11 per cent.

They are also responsible for around 25 per cent of the verification of the near 400 million credits issued so far.

“Both the DOEs and project developers have strategies to deal with any suspensions so we see the impact as being quite limited,” said Mischa Classen senior project manager at Germany-based carbon asset management firm First Climate.

Some nine projects are also subject to an issuance request for a review, covering a total of 871,992 issued CERs.

The outcome of reviews for issuing credits to five projects should also be revealed this week, with a total of 410,405 CER’s under threat, 167,151 of which are from a Brazil based hydro project.


Source: Point Carbon, Carbon Market Daily, Vol. 06, Issue 56, March 23, 2010