CISCarbon

Carbon Project Review

Overview

CIS Carbon Project Review service is an extension of the basic rating service where external analysts offer an opinion as to the ultimate delivery and financial risk of a given project. The CPR service is CIS most focused and thorough: rather than assuming the validity of document based facts, the CPR services go a step further in that each piece of information is tested for relevance, truthfulness and accuracy. In particular, any information related to the project itself or to the project owner is scrutinized in detail through site visits and interviews.

How deep the scrutiny should be depends on a number of factors such as methodological issues, the project's complexity and various financial or technical uncertainties.

We remain abreast of any and all developments and changes affecting carbon project methodologies. We provide answers and we identify the challenges and the risks that a given project might face. We go behind the veil of Project Idea Notes (PINs), Project Concept Notes (PCNs) or Project Design Documents (PDDs) that often offer a rosy picture against the reality that many projects in fact never succeed as GHG emission reduction projects.

The CPR services offered by CIS include onsite visits and interviews of management by CMC’s chosen methodology experts and CIS financial analysts.

Sequence of Activities

CDM Expertise

Collection of the project information.
Analysis of the project publicly available documentation.
Field visit to the plant site and company headquarter. Discussions with site coordinators / plant personnel to understand the plant processes and data (international CDM expert 1 or 2 working days).
On-site data gathering.
Study of the risks involved in the possible baseline as per the approved methodology of UNFCCC (robustness of the baseline calculation).
In the case of a new methodology, analysis of the new proposed methodology and its likeliness to be approved by the Executive Board.
Analysis of the proposed (or possible) additionality demonstration.
Study of the proposed (or possible) monitoring & verification protocol.
Evaluation of EIA (Environmental Impact Assessment) and quality of the stakeholder consultation.
Consultation of DNA and local stakeholders, including study of potential social activity against the project.
Ex ante calculation of the number of expected CER’s, according to the proposed project activity (several scenarios can be taken into consideration).
Determination of the registration risk of the project (likeliness of the CDM project to successfully obtain the validation and registration).
Determination of the yield risk of the project (likeliness of the CDM project to generate the number of expected CERs – Delivery Risk Rating Report).

Financial Expertise

Field visit to the plant site and company headquarter. Discussions with site manager and project sponsors (CEO / CFO) (financial expert 1 or 2 working days).
On-site financial data gathering and review (audited financials, updated management accounts, loan facility letter, banks and bills statements).
Liaise with Project manager / project sponsor on commercial strength of the project (national and international sector analysis, study of the business plan if existing).
Liaise with Project manager / project sponsor on financial strength of the project (Cost of the project, available capital and loan for the project).
Assess the quality and adequacy of the fundraising strategy proposed (likeliness of meeting financial needs).
Study of the country risks and specific industry risks that could impact the project.
Calculation / inspection of the IRR of the project with and without CERs.
Determination of the expected proceeds of CERs for the first crediting period (either 7 or 10 years) on the basis of the “Neutral Price” of the CERs, as calculated by CIS.

More Information

Carbon Project Reviews can often vary in complexity and thoroughness. Most are tailor made to suit individual clients’ needs.

If you would like to find out more about our Project review service please contact us.

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Overview

Sequence of Activities

More Information