The project participants in a CDM project engage a designated operational entity (DOE) to verify the data which has been collected by the project participants in accordance with the monitoring plan. That data will be set out in a monitoring report, which must be provided to the DOE engaged to conduct the verification.
The steps involved in verification are set out in 3/CMP.1, Annex, paragraph 62, and are as follows:
The designated operational entity contracted by the project participants to perform the verification shall make the monitoring report publicly available, and shall:
- Determine whether the project documentation provided is in accordance with the requirements of the registered project design document and relevant provisions of decision 17/CP.7, the present annex and relevant decisions of the COP/MOP;
- Conduct on-site inspections, as appropriate, that may comprise, inter alia, a review of performance records, interviews with project participants and local stakeholders, collection of measurements, observation of established practices and testing of the accuracy of monitoring equipment;
- If appropriate, use additional data from other sources;
- Review monitoring results and verify that the monitoring methodologies for the estimation of reductions in anthropogenic emissions by sources have been applied correctly and their documentation is complete and transparent;
- Recommend to the project participants appropriate changes to the monitoring methodology for any future crediting period, if necessary;
- Determine the reductions in anthropogenic emissions by sources of greenhouse gases that would not have occurred in the absence of the CDM project activity, based on the data and information derived under subparagraph (a) above and obtained under subparagraph (b) and/or (c) above, as appropriate, using calculation procedures consistent with those contained in the registered project design document and in the monitoring plan;
- Identify and inform the project participants of any concerns relating to the conformity of the actual project activity and its operation with the registered project design document. Project participants shall address the concerns and supply relevant additional information;
- Provide a verification report to the project participants, the Parties involved and the Executive Board. The report shall be made publicly available.
CDM verification requirements, based on paragraph 62 of the CDM modalities and procedures, are described in detail in the CDM Validation and Verification Manual (VVM) (EB 55, Annex 1). DOEs refer to the VVM as a guide to ensure that they achieve quality and consistency in their validation and verification work.
Once a DOE has completed the steps above, project participants will most likely engage the DOE to certify the emission reductions achieved during the relevant verification period.
Non-conforming monitoring data
Where it is discovered that monitoring has not been carried out in accordance with the registered monitoring plan, DOEs are required to make the most conservative assumptions theoretically possible when conducting verification:
In conducting verification, when it is discovered that activity levels or non-activity parameters have not been monitored by the project participants in accordance with the registered monitoring plan, the DOE shall make the most conservative assumption theoretically possible in finalising the verification report (EB 26, paragraph 109(b)).
Changing the monitoring period undergoing verification
At EB 41, the Executive Board decided to allow DOEs to request a change in the dates of a monitoring period undergoing verification, provided the change is the result of the corrective action request raised by the DOE during the verification process (EB 41, paragraph 78).