• Participation in a CDM project activity is voluntary.
• Parties participating in the CDM shall designate a national authority for the CDM .

• A Party not included in Annex I may participate in a CDM project activity if it is a Party to the Kyoto Protocol . (i.e. ratify Kyoto Protocol)

A party included in Annex I with a commitment inscribed in Annex B is eligible to use CERs if it is in compliance with the following eligibility requirements:

• It is a Party to the Kyoto Protocol .
• Its assigned amount has been calculated and recorded .
• It has in place a national system for the estimation of anthropogenic emissions by sources and anthropogenic removals by sinks of all greenhouse gases not controlled by the Montreal Protocol, in accordance with Kyoto Protocol and other requirements in decided guidelines.
• It has in place a national registry in accordance with Kyoto Protocol and other requirements in decided guidelines.
• It has submitted annually the most recent required inventory , in accordance with Kyoto Protocol and other requirements in decided guidelines. (For the first commitment period , the quality assessment needed for the purpose of determining eligibility to use the mechanisms shall be limited to the parts of the inventory pertaining to emissions of greenhouse gases from sources/sector categories from Annex A to the Kyoto Protocol and the submission of the annual inventory on sinks)
• It submits the supplementary information on assigned amount in accordance with Kyoto Protocol and other requirements in decided guidelines.
• A Party that authorizes private and/or public entities to participate in CDM project activities shall remain responsible for the fulfillment of its obligations under the Kyoto Protocol and shall ensure that such participation is consistent with the present annex. Private and/or public entities may only transfer and acquire CERs if the authorizing Party is eligible to do so at that time.