Materiality

At CMP7 a new Materiality Standard was adopted, which provides for a standardised definition of materiality across the CDM.

Material information was defined as a piece of information the omission, misstatement or erroneous reporting of which, could change a decision of the Executive Board.

The decision also provides for the scope of materiality to initially cover:

  1. The stage of verification by designated operational entities;
  2. The assessment of requests for issuance by the Executive Board and its support structure;
  3. Non-prescriptive and prescriptive requirements;
  4. Quantitative information.

Further detail was also provided for determining whether a misstatement of information regarding emissions reductions or removals was sufficient to be material across the various project sizes:

  1. 0.5 per cent of the emission reductions or removals for project activities achieving a total emission reduction or removal of equal to or more than 500, 000 tonnes of carbon dioxide equivalent per year;
  2. 1 per cent of the emission reductions or removals for project activities achieving a total emission reduction or removal between 3000, 000 and 500, 000 tonnes of carbon dioxide equivalent per year;
  3. 2 per cent of the emission reductions or removals for large-scale project activities achieving a total emission reduction or removal of 300, 000 tonnes of carbon dioxide equivalent per year;
  4. 5 per cent of the emission reductions or removals for small-scale project activities other than project activities not covered below;
  5. 10 per cent of the emission reductions or removals for the type of project activities that are referred to in decision 3/CMP.6, paragraph 38.