Investors: Investors can come from every country on Earth. Companies from Annex-B-countries are excluded from the use of the flexibility mechanism of the Kyoto-Protocol and therefore are not allowed to deal with CERs. CONDITIONS FOR A PROJECT: CDM-projects have to contribute to sustainable development of the host country. That means only projects considered to be sustainable by the host country are eligible. The criteria catalogue for sustainable development is established by the host country according to its special needs. In reality these limitations will be quite loosely defined due to severe competition in the world market. CDM excludes any kind of nuclear power stations. Projects shall not result in the diversion of official development assistance. Therefore projects financed by the Global Environmental Facility (GEF) are excluded CDM-forestation projects are limited to 1% of the basis emissions (annually 183 Mio. t CO2). Permission The government of the host country has to approve the project. In some cases this can lead to charges and additional requirements. Furthermore a reference scenario must be established. Technical documents and a monitoring plan have to be provided as well. The project must be validated by a notified body for certification. After that the CDM Board will register the CDM-project. Operational entities Operational entities must be accredited and designated by the executive board. Fees: Two per cent of the proceeds and a fee for administrative costs are kept back. The costs for certification and consultancy are normally in charge of the investor. Host Country: The country where the investment takes part must have ratified as non-Annex-I-country the Kyoto Protocol and confirm the investor in a written way that the project supports the sustainable development of the country.