1. Verification of Forest-based Carbon Projects Sebastian Hetsch Carbon Management Service TÜV SÜD Industrie Service GmbH Roundtable on Validation and Verification of LULUCF Projects 25 August 2009

2. TÜV SÜD Industrie Service GmbH  Department in the TÜV SÜD Industry Service  50 Professionals HQ (Munich)  Worldwide >100 Auditors  Active in CDM Projects (all 15 scopes), Renewable Energy and GHG Inventory Carbon Management Service TÜV SÜD

3. TÜV SÜD Industrie Service GmbH “Verification is the periodic independent review and ex-post determination by the designated operational entity of the monitored reductions… during the verification period. Certification is the written assurance …” (Marrakech Accords) Verification Pre-condition for issuance of CERs Assessment of conformity with registered monitoring plan and CDM guidelines Shifts liability of issuance for non-valid CERs to the operational entity

4. TÜV SÜD Industrie Service GmbH Difference to other CDM projects: Late start of projects lead to late start of verification Long verification cycle Limited experience in verification Basis of verification is forest inventory Experience in AR-Verification

5. TÜV SÜD Industrie Service GmbH Six Reasons for Verification Headaches Verification

6. TÜV SÜD Industrie Service GmbH DATA MANAGEMENT: Long list of monitoring parameters (old methodologies) Parameters defined in Monitoring Plan are not monitored Lack of consistency during the entire reporting period POTENTIAL SOLUTION: Initial verification Definition of procedures (SOPs) in Monitoring Plan Reason #6 for Verification Headaches

7. TÜV SÜD Industrie Service GmbH Reason #5 for Verification Headaches QUALITY MANAGEMENT: Lack of a quality assurance and quality control system Lack of understanding in project team of what is required for CDM SOLUTION: Implementation of QA/QC and quality management systems Clear definition of roles and responsibilities

8. TÜV SÜD Industrie Service GmbH Reason #4 for Verification Headaches UNCERTAINTY, ACCURACY & PRECISION: Precision can only be determined ex-post, after sampling Unclear guidelines in many meths on how to deal with uncertainty and accuracy SOLUTION: If high variance either more samples or conservative estimate for the mean carbon stock in the area / stratum Improved guidelines on uncertainty and accuracy

9. TÜV SÜD Industrie Service GmbH Reason #3 for Verification Headaches UNDERDELIVERY OF ESTIMATED AMOUNTS: Too optimistic growth models Calamities / mortality Less reforested area than originally planned SOLUTION: Be conservative Site classification important Use of actual country-specific or project-specific values rather than default values

10. TÜV SÜD Industrie Service GmbH Reason #2 for Verification Headaches PROJECTS NOT IMPLEMENTED AS PLANNED: Different species composition Time delays (Validated-related problem, poor validation) SOLUTION: Initial verification Clearer guidelines from EB on how to deal with such issues More careful preparation of the Monitoring Plan in the PDD

11. TÜV SÜD Industrie Service GmbH Reason #1 for Verification Headaches

12. Thank you for your attention Sebastian Hetsch TÜV SÜD - Carbon Management Service sebastian.hetsch@tuev-sued.de www.tuev-sued.de/climatechange