1. 1 Quality Assurance 1 Robyn Camp Vice President, Program The Climate Registry Los Angeles, CA March 22, 2010

2. 3 rd Party Verification: With/Without? With:  Consistent data  Defined quality standards  Comparability  Transparency Without:  Inconsistent data  Varying standards Scope 1 only? Time period?  Varying quality We have collected over 800 years of voluntarily reported emissions data and only a handful have not had material misstatements the first time through the process, even those using CEMs data

3. Where do we need 3rd party verification? For private organizations:  Reality check to prepare for regulation  Assure high quality in context of voluntary program  Provides independent review of internal systems – does it make sense to someone who doesn’t work for your organization?  Assures value of carbon-related assets (offsets) and liabilities (emissions) For regulators  Provides additional resources for GHG assurance in the short terms in efficient way  Allows for subject matter experts who understand the often complex processes and systems that emit GHGs  Aligns workflow so that regulators can review very high-quality data Perhaps not essential?  Small sources where limited assurance is appropriate e.g., office-based organizations

4. Can it be outsourced? Yes! Our model: accredit VBs  Partnership with ANSI  Oversight by Registry staff and Board  Community of VBs also “self-policing”

5. Verification Costs Costs vary:  Small emitters “batch verification” ~ $500/year  Large emitters: range up to $100,000/year depending on scope  Average? Not possible to say. Biggest variables: 1. Quality of the internal management systems 2. Preparation of the organization 3. Complexity and scope of GHGs Our experience: < $0.001 /ton for large emitters, not a significant cost Feedback: costs of verification are lower than costs of regulatory compliance – based on penalties, level of review (because verification is a process in which you can correct actions before final submission).

6. 6 Tools to Manage Verification Costs Training: Prepare for Verification webinars Guidance: “Factors that Affect Cost of Verification” Worksheet: Internally Reviewing Your CRIS Report Template: Request for Proposals, with tips Contact: Registry staff and/or 14 accredited VBs