It further provides an analysis of the impact of registration of the proposed project as a CDM project activity (step 5). It helps to determine whether the proposed project activity is economically and financially less attractive than those alternatives without the revenue from the sale of certified emission reductions (CERs). The COMFAR III CDM Module addresses in particular the implementation of step 2. Impact of registration of the proposed project activity as a CDM project activity.Investment analysis to determine that the proposed project activity is not the most economically or financially attractive.Identification of alternatives to the project activity that are consistent with current laws and regulations.This tool requires the application of a step-wise approach to ascertain whether a project is eligible to generate certified emission credits (CER). The COMFAR III CDM Module facilitates the demonstration of additionality for CDM projects as required under the financial analysis test of the Tool for the demonstration and assessment of additionality published by the United Nations Framework Convention on Climate Change UNFCCC CDM Executive Board (referred to as “additionality tool” from here-on) and the CDM guidelines published by UNIDO. It supports project pre-investment studies, facilitates data organization, computations and the production of pro-forma reports on financial and economic performance.
With regard to CDM projects, the new software can be used to determine investment and operating costs and to define the sales programme for emissions reductions. The software permits the analysis of industrial and non-industrial projects such as new investments, rehabilitations, expansions, joint venture or privatization projects.
It has been expanded to cover industry, agro-industry, infrastructure, tourism and mining projects, as well as projects complying with the Kyoto Protocol (CDM/JI). It is a comprehensive and flexible software, based on more than 20 years of experience. The COMFAR III Software is a cash- flow oriented computer model to facilitate the financial and economic appraisal of investment projects.