Validation and Verification of CDM Projects Climate Change Kiosk on CDM/DNA, COP9 December 6, 2003 Marco van der Linden SGS Climate Change Programme

2 Contents of presentation Introduction to DOE’s Brief introduction to SGS Input of DOE in the CDM project cycle Validation of CDM projects Monitoring Plan Verification of CDM Projects Final remarks More information and contact details

3 Introduction to DOE’s Kyoto Protocol requires an independent third party to be involved in CDM project cycle Independent party is referred to as a Designated Operational Entity (DOE) DOE is legal entity with two basic functions:  Validation and subsequently request for registration of a proposed CDM project activity  Verification and certification of the emission reductions of a registered CDM project activity Core task of a DOE is to protect the environmental integrity of the CDM and facilitate the trade in emission reductions by providing confidence

4 Brief introduction to SGS SGS is the worlds largest inspection, verification and testing company, providing services in over 140 countries world-wide In house expertise: metering, calibration, laboratories, industrial inspection, environmental impact assessments, air and water quality, land contamination, ISO certification, EMAS Verification….. SGS Climate Change Programme  Started in 1997 with “sinks” projects, since then, expanded into all GHG sectors / all gases  Validated more than 30 potential JI and CDM projects; (preliminary) verification of around 10 potential CDM and voluntary projects

5 Input of DOE in the CDM project cycle Project Developer Project idea Implementation/ Monitoring Verification / certification Validation / registration Write Project Design Document CER DOE Project Developer DOE

6 Validation of CDM projects Projects are required to use a methodology that is approved by the CDM Executive Board to establish the project baseline, additionality and monitoring methodology The purpose of a validation is to have the DOE assess the project design, in particular the use of the approved methodology and the project’s compliance against the requirements of the Marrakech Accords and the host party Main criteria are:  Completeness of documentation  Host country acceptance and host country eligibility  Applicability and correct use of the approved methodology  The project reduces emissions below those in absence of the project  Environmental and social performance  Development of an effective monitoring plan  National and international stakeholder consultation

7 Monitoring Plan During implementation of the project, the project manager will have to monitor the GHG emissions Monitoring plan must show how the data are going to be collected During validation:  The parameters used to predict the emissions will be cross- checked against the monitoring plan to ensure that those parameters which have a very strong influence on the reported results will be collected with the highest accuracy.  The assessment team will be particularly interested to see how data will be collected and how quality of data will be assured. The monitoring plan must also cover environmental and social impacts as required by any Social / Environmental Impact Assessment and any other regulatory requirements

8 Monitoring Plan (cont) During project implementation:  The project managers must collect data exactly as specified in the monitoring plan  The Verifier will verify that the Monitoring Plan has been implemented as specified in the validated Project Design Document Changes to the Monitoring Plan need to be approved by a Validating Operational Entity

9 Verification of CDM projects Verification is the periodic independent review of the monitored project emissions during the implementation period By comparing these with the baseline emissions, it results in an opinion of the number of emission reductions The Verifier “certifies in writing” the number of avoided emissions and submits a Certification Report. At this stage a high level of certainty is required

10 Final remarks DOE has to be independent of the project, this means they can not consult on the development of the project or the writing of the project design document Except for small scale projects, the DOE performing the validation must be different from the DOE performing the verification in order to ensure there is no conflict of interest

11 More information and contact details UNFCCC website: CDM project cycle: Role of DOE: Contact details SGS: Marco van der Linden Tel: +31 (0) Corporate Website: