Designated Operational Entities (DOEs) validate CDM projects and verify the offsets that are issued to a project. The CDM is an offsetting mechanism. This means that the emission reductions credited under the CDM entitle the buyers of the CERs to increase their domestic emissions correspondingly. The CDM in itself does not directly reduce global GHG emissions but helps to achieve a given emission reduction target at a lower cost. It is therefore of utmost importance that in the event of the issuance of excess CERS, either by error, negligence, or as a result of fraud, an equal amount in tonnes of carbon dioxide equivalent should be transferred to a cancellation account maintained in the CDM registry by the Executive Board.

CDM Watch submissions on “Procedures Regarding the Correction of Significant Deficiencies and the Excess Issuance of CERs (pdf-file, October 08, 2010)