1. Presentation title
1st Sustainable Development Mechanisms Joint Coordination Workshop
Module 2.4
Materiality
Bonn, Germany, 24–25 March 2012
Marsha Cheddi
Standard Setting Unit, SDM Programme
UNFCCC secretariat

2. Presentation title
CMP decision in Durban
CMP adopted the application of the concept of materiality and level of assurance in the CDM
Materiality initially applies to verifications (for DOEs) and assessment of requests for issuance (for the EB and its support structure)
CMP defined material information as a piece of information the omission, misstatement or erroneous reporting of which could change a decision by the Board
CMP defined five materiality thresholds
CMP decided that a reasonable level of assurance be used by DOEs in verifications

3. CMP decision in Durban (cont.)
Presentation title
CMP decision in Durban (cont.)
CMP requested the Board to:
Implement the concept of materiality, and report on the experience of implementation at CMP8
Increase its interaction with DOEs to facilitate a uniform interpretation and application of the concept of materiality
Address the issue of uncertainties of measurements in baseline and monitoring methodologies so that these types of uncertainties are not considered in addressing materiality
Develop guidance on how to apply thresholds and what should be done if they are surpassed

4. Implement the concept of materiality
Presentation title
Approach
Implement the concept of materiality
The VVS will be updated to include the concept of materiality, the thresholds, and level of assurance
To support the consistent application of materiality in verifications, guidelines will also be developed.
Increase its interaction with DOEs to facilitate a uniform interpretation and application of the concept of materiality
SDM Joint Coordination Workshop is the first interaction
DOEs and AIEs have been invited to provide concrete examples of application of materiality for the development of the guidelines
Other interactions to come (format and timeline to be determined)

5. Presentation title
Approach
To address the issue of uncertainties of measurements in baseline and monitoring methodologies so that these types of uncertainties are not considered in addressing materiality
Secretariat to amend the PS and VVS to address the issue of uncertainties of measurements, or develop a separate standard
Materiality guidance to be clear about not considering these types of uncertainties in addressing materiality

6. Presentation title
Approach
Develop guidance on how to apply materiality thresholds and what should be done if they are surpassed
EB 67 - Secretariat to present a concept note that includes a detailed outline for the proposed guideline for the Board’s consideration
EB 68 - Secretariat to present a first draft of the guideline for the Board’s consideration and launch a call for public inputs
EB 69 - Secretariat to present a final draft for the Board’s consideration and adoption