The Gold Standard sets higher quality standards than the CDM and is endorsed by over 40 NGOs worldwide. Gold Standard projects may include renewable energy or energy efficiency technologies, but sequestration projects are excluded.

The Gold Standard requires that strict additionality standards be met for project certification, which must be checked by a UNFCCC-accredited organization. Monitoring and verification is also carried out to ensure the benefits are realized.

Furthermore, Gold Standard projects take into account differing environmental, social and economical factors to maximize the sustainable development benefits.

Because they adhere to a stricter standard than that required for CDM certification, Gold Standard projects usually qualify as CDM projects. As with CDM projects, the high transaction costs associated with Gold Standard certification, participation is generally limited to large projects.

On the one hand, Gold Standard certification helps to assure buyers of a project’s reliability as well as its contribution to sustainable development. On the other hand, there are economic costs associated with such a rigorous standard: compliance with the Gold Standard is even more expensive than following the normal CDM guidelines.

For more information about the Gold Standard, click here . . .