2. Ensuring Effective Monitoring, Certification and Verification of Emissions by Jed Jones Lloyd’s Register

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

4. Accreditation 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.

5. Certifying 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.

6. Definitions 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.

7. Definitions 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.

8. The Objectives of Accreditation and Certification 1.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.

9. Role of the Accreditation Body 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.

10. Role of the Certifying Authority 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.

11. International Accreditation Body 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

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

13. Structure for International/ Regional Accreditation INTERNATIONAL ACCREDITATION BODY AB CA REGIONAL ACCREDITATION BODIES CERTIFYING AUTHORITIES CONFERENCE OF THE PARTIES SUBSIDIARY BODY

14. Requirement 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.

15. How do you set the baseline? National baselines Sectoral baselines Project specific baselines

16. Baseline 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.

17. Article 6 - Joint Implementation 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.

18. Article 12 - Clean Development 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.

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

20. Monitoring 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.

21. Monitoring II Responsibility for monitoring emissions should rest with the project operator/investor. Records of emissions should be verified by independent third party audit.

22. Scope of Certification and Verification There are 3 broad activities associated with the flexible mechanisms: -Project Assessment -Periodic Audit -Compliance

23. Project Assessment

24. Periodic Audit

25. Compliance

26. Conclusions 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.