UNDP Around the world

Project-Based Activities: UNDP's Assistance

MDG Carbon services

MDG Carbon's services consist of two phases:

  • Phase I: UNDP performs its due diligence, assessing the viability of the project and laying the foundation for project development.
  • Phase II: UNDP provides project development services, including assistance with project design, validation and registration, as well as assisting in the development of a monitoring system for the emission reductions.

After the prospective emission reduction project passes initial screening for eligibility and feasibility, Phase I begins with the project proponent signing a Memorandum of Understanding with UNDP. Then UNDP conducts an in-depth due diligence process, analyzing the project according to standardized criteria in the areas of carbon and technical feasibility, financial and legal viability, impact on the MDGs, and country risk. During this process, all parties work together to identify and mitigate any risks to the project, and to lay the foundations for successful project development.

Once a project satisfies the due diligence phase, Phase I culminates the project proponent's entry into a Service Agreement with UNDP, covering project development services.


Phase II begins with MDG Carbon guiding the preparation of the Project Design Document (PDD), a requirement in the CDM project cycle. The PDD indicates how the project will reduce emissions below levels that would otherwise have been emitted. Once the PDD has been prepared, it is reviewed by a Designated Operational Entity (DOE) for validation and is then submitted to the CDM Executive Board for registration. The PDD, the validation report and an approval letter from the Designated National Authority form the basis for the project's registration.

Following registration with the CDM Executive Board, the emission reduction project's activities may now count towards generating carbon credits. The precise level of activities is recorded through a Project Monitoring Report before being verified by the DOE. The DOE issues a Verification and Certification Report that is submitted to the CDM Executive Board, which then issues Certified Emissions Reductions (CERs) to the project proponent.

Throughout the CDM project cycle, project proponents will benefit from MDG Carbon's comprehensive services package, including its extensive worldwide, on-the-ground presence in developing countries; its broad understanding of local contexts and ability to effectively manage local risks; and its expertise in environmental project development and knowledge of the CDM regulatory process.