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Ensuring Effective Ensuring Effective Monitoring, Certification and Monitoring, Certification and

Verification of EmissionsVerification of Emissions by

Jed JonesLloyd’s Register

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nCertification and Certification and VerificationVerification

One possible solution is through accreditation and certification similar to the system used in quality and environmental management system regulations.

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nAccreditation BodiesAccreditation Bodies

There are almost 50 accreditation bodies throughout the world.

There are clear differences in the interpretation of the accreditation criteria by the various accreditation bodies.

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n Certifying AuthoritiesCertifying Authorities

Over 500 certifying authorities have been granted accreditation throughout the world.

Despite satisfying accreditation criteria there can be significant variation in the results of certification both within and between countries.

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n DefinitionsDefinitions

Accreditation:

The recognition, by a responsible authority, that an impartial body is competent to undertake defined activities.

Certification:

The authoritative act by which an independent accredited body documents that a process or procedure is compliant with pre-set standards or criteria.

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n Definitions IIDefinitions II

Verification:

Confirmation, by examination and provision of objective evidence, that results have been achieved or that specific requirements have been fulfilled.

Monitoring:

The systematic surveillance and measurement of defined parameters.

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n The Objectives of The Objectives of Accreditation and Accreditation and CertificationCertification1. Create confidence that the

regulations are being properly applied in a consistent manner to maintain integrity world-wide.

2. Ensure it is equitable and free from anomalies.

3. Cost-effective.

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n Role of the Accreditation Role of the Accreditation BodyBody

1. Provide accreditation to suitably qualified certifying authorities.

2. Monitor the evaluations undertaken by certifying authorities through approved procedures and systems.

3. Annually audit each accredited body and evaluate changes to operating systems.

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n Role of the Certifying Role of the Certifying AuthorityAuthority

1. To audit emission records of entities participating or wishing to participate in the trading scheme.

2. To validate through the certification process the permits participants wish to trade.

3. Certification services as required by domestic arrangements.

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n International Accreditation International Accreditation BodyBody

The IAB would need to have the following credentials:

- international experience in certification

- financially independent

- must have high calibre assessors

- set and maintain high standards

- apply sanctions when necessary

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n Certifying AuthoritiesCertifying Authorities

The accreditation of local certifying authorities should be encouraged provided they satisfy accreditation criteria agreed by the Conference of the Parties.

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n Structure for International/Structure for International/Regional AccreditationRegional Accreditation

INTERNATIONALACCREDITATION BODY

ABAB AB

CA CA CA

REGIONALACCREDITATIONBODIES

CERTIFYINGAUTHORITIES

CONFERENCEOF THE PARTIES

SUBSIDIARY BODY

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n Requirement for BaselinesRequirement for Baselines

Both Article 6 and Article 12 require emission reductions to be additional to those which would otherwise have occurred.

This requires an emissions baseline for each JI and CDM project.

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n How do you set the How do you set the baseline?baseline?

National baselines

Sectoral baselines

Project specific baselines

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n Baseline ApprovalBaseline Approval

For CDM projects this could be the responsibility of the executive board of the CDM.

For JI projects and sequestration projects under Article 3, paragraph 3, responsibility for approval is less clear.

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n Article 6 - Joint Article 6 - Joint Implementation ProjectsImplementation Projects

An agreement between developed countries to undertake a project which will create emission reduction units through either:

- reducing emissions by source, or

- enhancing removals by sinks, i.e.carbon sequestration projects.

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n Article 12 - Clean Article 12 - Clean Development MechanismsDevelopment Mechanisms

The purpose of the CDM is to assist developing countries achieve sustainable development and assist developed countries in meeting their emissions limit.

CDM projects were seen primarily as an agreement where developed countries invest in a developing country.

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n Clean Development Clean Development Mechanisms IIMechanisms II

The process will be controlled by an executive board which will recommend the approval of projects and ratify emission reductions achieved.

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n MonitoringMonitoring

The rules, guidelines and modalities for monitoring must be consistently applied.

Methodologies to estimate and monitor emissions must be acceptable to the Intergovernmental Panel on Climate Change:

- continuous monitoring

- estimations using approved protocols.

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n Monitoring IIMonitoring II

Responsibility for monitoring emissions should rest with the project operator/investor.

Records of emissions should be verified by independent third party audit.

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n Scope of Certification and Scope of Certification and VerificationVerification

There are 3 broad activities associated with the flexible mechanisms:

- Project Assessment

- Periodic Audit

- Compliance

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n Project AssessmentProject Assessment

Article6

Article12

Article17

Approval ofParties

V V -

SustainableDevelopment

- V -

Baseline(Additionality)

C C -

ProjectRegistration

- V -

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n Periodic AuditPeriodic AuditArticle

6Article

12Article

17Validity ofBaseline

V V -

Cert. of ActualEmissions(Monitoring)

C C -

ERUs Created V - -

ERUsSequestered

V - -

Certification ofCERs

- C -

Certification ofCarbonSequestered

C C? -

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nComplianceCompliance

Article6

Article12

Article17

Article 5 V V VArticle 7 V V VArticle 8 V V VSupplementarity V V VAdditionality V V -SustainableDevelopment

- V -

IPCCMethodologies

V V V

GovernmentApproval(Seller)

- - V

Validity ofPermits

- - V

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n ConclusionsConclusions

Rules must be consistently applied.

Certification must result in created entitlements being fungible with assigned amounts.

Parties must agree and accept penalties for non-compliance.

Certification must result in a system which is transparent, efficient and accountable.

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