Workshop on Programme of Activities under CDM, Bonn, 7-8 May 2011 28 March 2017 DOEs persepctive: Validation of a PoA and CPA Inclusion and best practices for establishing the criteria for CPA inclusion Workshop on Programme of Activities under CDM, Bonn, 7-8 May 2011

Outline Par 166 VVM 1.02 The Managing Entity is prime responsible (first port of control) for the inclusion or exclusion of a CPA Para 167 VVM 1.02 All CPA to have demonstrated compliance with POA-DD criteria on additionality and methodological application or any other additional eligibility criteria set out in POA-DD

What are DOEs looking for ? DOEs will check: Overall Capability of the Management Entity Human resources Quality Contol System Legal structure and arrangements Expected number of CPA’s Eligibility criteria set out in POA-DD are being clearly defined and capable of testing and demonstrating additionality of CPA testing and demonstrating applicablity of methodology excluding potential CPAs that do not meet the additionality and methodological requirements Procedures and evidence on how Management Entity assess eligibility criteria of included CPAs Application process of CPA Contractual arrangement between Management Entity and CPA Monitoring Procedures to test continious compliance methodological requirements on CPA Corrective Action Procedures

What should the eligibility criteria be able to do? 28 March 2017 What should the eligibility criteria be able to do? Management / Coordinating Entity Project A1 Project A2 Project A3 Project A4 ELIGIBILITY CRITERIA POA-DD Comply? Yes/No Monitoring of CPAs PoA CPAs CPA 1(A1) CPA1 () Project B4 Project B1 Project B2 Project B3 CPA 2 (A2) CPA 2 () Project A4 CPA 3 (A3) CPA 3 () CPA 4 (A4) CPA 4 (A4) CPA 4 () Project B2 CPA 7 (B4) CPA 6 (B3) CPA 5 (B1) Project B3 Opening slide: In order to demonstrate how a good inclusion process should work I will to demonstrate the processes in the intial validation and first year of operations We have a Management entity and 4 potential CPAs which want to form the PoA. Click mouse: The Management entity defines the eligibitliy criteria using the principles as outline in the previous slide and test the 4 CPAs for their compliance. Since the Management Entity will have worked close with these 4 CPAs to form the PoA it is expected that all the 4 will pass the test. Click mouse: After the registration of the PoA the Mangement Entity starts monitoring the performance of the CPAs and in this example it is found that CPA number 4 did not implement its activities in line with the methodology requirements of the PoA. Click mouse: In this example it is concluded that the NC is such that the CPA is not able to fix it and as such can no longer be part of the PoA and gets consequenlty removed from the PoA by the Management Entity. Click mouse: In the same period that the first CPAs are being monitored the Management Entity has identified a new group of Possible CPAs which it wants to include. During its assessment of the eligbility criteria it concluded that 3 out of th 4 projects could be included and are now put forward to the DOE for inclussion assessment. Click Mouse: The DOE consequently looks at the 3 CPAs and finds that one fo the 3 does in fact not comply with the eligibility criteria of the POA-DD and rejects its registration. Final click to bring home message. CPA 6 (B3) A DOE WILL BE ABLE TO GIVE A POSTIVE VALIDATION IF MANAGEMENT ENTITY CAN DEMONSTRATE THIS PROCESS

THANK YOU !

Safeguarding life, property and the environment 28 March 2017 Safeguarding life, property and the environment www.dnv.com