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CDM Due Diligence Idete reforestation project in Tanzania
The Ministry of Finance, Norway is interested in buying CERs from the Idete reforestation project of Green Resources Ltd. in Tanzania, Africa which aims for CDM (Clean Development Mechanism) registration. The project area currently consisting of 7330 ha of grassland will be transferred into a high value timber plantation with the purpose of commercial wood production in compliance with the FSC (Forest Stewardship Council) and CCBA (Climate, Community and Biodiversity Alliance) standards. The objective of this study is to assess the risk of this reforestation project under the CDM. Successful CDM registration, subsequent CER generation and sale of CERs would generate an additional revenue stream for this project needed to make it financially attractive. At the request of the Ministry of Finance the environmental and socials aspects of the project were assessed in more detail than mandatory for CDM project registration. The analysis of risks for the Idete reforestation project activity as currently set up shows risks in many areas that are key for successful CDM registration. Many of these issues can be addressed by improving project design.