- Project Description, Baseline Scenario and Additionality
- MRV Plan & Sustainable Development Contribution
- Stakeholder Engagement, Good Governance, and Financial Transparency
A Project Design Document (PDD) is the heart of any carbon project. It is the blueprint that explains how the project will reduce or remove greenhouse gas emissions, and it’s essential for the project’s registration, validation, and monitoring under various carbon standards and registries.
A well-prepared PDD shows that the project is real, additional (i.e., it wouldn’t happen without carbon finance), and beneficial for the environment and local communities. Let’s take a look at what makes a good PDD, explained simply and clearly for anyone interested in carbon projects.
Project Description, Baseline Scenario and Additionality
First, a good PDD must start with a simple but complete description of the project. It should state the project’s title, purpose (such as reducing carbon emissions), and location. It must also describe the size or scope of the project, and list all the participants involved, including their roles and responsibilities. Providing technical details about how the project will achieve emission reductions, like the technology or activities used, is very important to build credibility.
A critical part of the PDD is explaining the “baseline scenario”, what would happen if the project did not exist. This means estimating the greenhouse gas emissions under normal conditions. The project must then prove “additionality,” meaning that the reductions in emissions are truly because of the project, not something that would have happened anyway.
This can involve showing that the project faces barriers (technical, financial, or institutional) that it can overcome only with carbon finance support.
MRV Plan & Sustainable Development Contribution
A strong Monitoring, Reporting, and Verification (MRV) plan is essential for ensuring that a carbon project delivers real and measurable results. A well-crafted Project Design Document (PDD) should outline the specific data to be collected, the frequency of collection, and the responsible parties. It must also detail how emission reductions will be reported and verified by an independent third party to ensure transparency and build trust with stakeholders and investors.
Beyond emissions reductions, carbon projects must also contribute to sustainable development by bringing benefits to local communities and the environment. A comprehensive PDD should demonstrate how the project supports sustainable development goals, such as improving local livelihoods, protecting biodiversity, or promoting clean energy. Additionally, the project must comply with local and national laws, addressing any potential negative impacts with clear and effective mitigation strategies.
Read more:
Measurement, Reporting, and Verification are Key to Successful Climate Mitigation
Stakeholder Engagement, Good Governance, and Financial Transparency
A successful carbon project relies heavily on the support of local communities and stakeholders. A well-prepared Project Design Document (PDD) should detail the consultation process with stakeholders, the feedback received, and how concerns were addressed. Transparency is essential, and making the PDD available for public comment helps build trust and ensures all voices are heard.
In addition, good governance is vital for ensuring the project is managed effectively. The PDD should outline the roles and responsibilities of the management team, explain the decision-making process, and demonstrate compliance with all relevant regulations. To enhance credibility, the PDD should include supporting documents such as maps, legal agreements, and detailed carbon calculations.
Finally, the PDD must explain how the project is funded. If the project requires external financial support, the PDD should clarify this need and ensure that any public funding is used appropriately, without diverting resources from other critical areas. In short, a good Project Design Document is clear, complete, and convincing.
It must cover the technical, environmental, social, and financial aspects of the project in a way that shows transparency and credibility. By following these simple principles, project developers can create strong PDDs that help their carbon projects succeed, benefiting both the climate and communities around the world.
Developing a comprehensive Project Design Document (PDD) is more than just a technical requirement, it is the foundation for your carbon project to be recognized, verified, and have real impact. From baseline, additionality, to MRV plan, every detail plays a role. If you are designing a carbon project and need support in developing a PDD, there are services that can help you develop a comprehensive and standardized document. Strong document, credible project.
Developing a solid Project Design Document (PDD) requires in-depth understanding and precision. For those designing carbon projects, support from a team of experts can help ensure that the document is prepared to standards and ready for the verification process. Consulting with experts can be an important step in strengthening the foundation of your project.
Author: Ainur Subhan
References:
United Nations Development Programme (UNDP). (n.d.). The Clean Development Mechanism: A User’s Guide. Chapter 3: Project Design Document (PDD). Retrieved from https://www.undp.org/sites/g/files/zskgke326/files/publications/cdmchapter3.pdf on 27/04/2025
International Carbon Registry Program. (2024). Project design description (PDD). Retrieved from https://documentation.carbonregistry.com/documentation/icr-program/project-development/templates/project-design-description-pdd on 27/04/2025
Gold Standard Foundation. (2023). Project design document (PDD) – Pre-review guide (Version 1.4). Retrieved from https://globalgoals.goldstandard.org/standards/TGuide-PreReview_V1.4-Project-Design-Document.pdf on 27/04/2025
Woodland Carbon Code. (2024). WCC project design document (Version 2.2.1, April 2024). Retrieved from https://woodlandcarboncode.org.uk/images/Word-Docs/WCC_ProjectDesignDocument_V2.2.1_April_2024.docx on 27/04/2025
UN-REDD Programme. (2025). Glossary: Project design document (PDD). Retrieved from https://www.un-redd.org/glossary/project-design-document-pdd on 27/04/2025