This guidebook is designed to help readers navigate the pitfalls of preparing a Project Design Document (PDD) for Clean Development Mechanism (CDM) projects. This second edition also aims at helping project developers to navigate the pitfalls of preparing a Monitoring Report and be better prepared to face the verification process. The purpose of a PDD is to prepare project information for relevant stakeholders. These stakeholders include the investment community, the Designated Operating Entity (DOE) performing validation of the project, the CDM Executive Board (EB), the Designated National Authorities (DNA) of the involved countries and the local population. The PDD, together with the validation report and the approval letter.