CDM validation and verification/ certification
Outline of CDM project cycle is shown in fig.1 "CDM project cycle" and the brief explanation of CDM validation and verification is given below.
Validation
Validation is an independent third party assessment for the project design. In particular, the project's baseline, the Monitoring Plan (MP), and the project's compliance with relevant UNFCCC and host Party criteria shall be validated in order to confirm that the project design as documented is sound and reasonable and meets the identified criteria. Validation is a requirement for all CDM projects and is seen as necessary to provide assurance to stakeholders of the quality of the project and its intended generation of certified emission reductions (CERs).
UNFCCC criteria refer to the Kyoto Protocol criteria for CDM, the CDM rules and modalities as agreed in the Marrakech Accords and relevant decisions by the CDM Executive Board.
Verification
Verification is the periodic independent review and ex post determination by the DOE of the monitored reduction in anthropogenic emissions by sources of GHG that have occurred as a result of a registered CDM project activity during the verification period. Certification is the written assurance by the DOE that, during a specified time period, a project activity achieved the reduction in anthropogenic emissions by sources of GHG as verified.
There are 2 types of Verification, that is, Initial verification ((1) of below) and Periodic verification ((2) of below). The project participants can, based on a cost-benefit analysis, choose whether an initial verification is carried out
a) as a separate activity prior to the project commencing its regular operations, or
b) as an integrated part of the first periodic verification.
Initial verification
Objective
The objective of an initial verification is to verify that the project is implemented as planned, to confirm that the monitoring system in place and fully functional, and to assure that the project will generate verifiable emission reductions.
Aspects
The initial verification should typically address the following aspects:
- Remaining issues and qualifications from validation/ determination
- Project implementation
- External data sources
- Environmental and social indicators
- Management and operational systems
Periodic verification
Objectives
The objective of the periodic verification is:
- to verify that actual monitoring systems and procedures are in compliance with the monitoring systems and procedures described in the monitoring plan,
- to evaluate the GHG emission reduction data and express a conclusion with a high, but not absolute, level of assurance about whether the reported GHG emission reduction data is free from material misstatements,
- the reported GHG emission data is sufficiently supported by evidence, i.e. monitoring records.
If no prior initial verification has been carried out, the objective of the first periodic verification also includes the objectives of initial verification.
Key verification principles
The audit conclusion is based on the interaction of following key verification principles:
- Compliance with monitoring plan
- Materiality / Accuracy
- Coverage
- Quality of evidence
Certification
DOE shall certify in writing that the project activity has achieved the verified amount of emission reductions that would not have occurred in the absence of the CDM project activity in the specified time period. DOE shall inform the project participants, the Parties involved and the Executive Board of its certification decision in writing immediately upon completion of the certification process. The certification report shall be made publicly available. The certification report shall constitute a request for issuance to the Executive Board of CERs equal to the verified amount of emission reductions.
