Withdrawal of accreditation
If, as a result of a review, the Executive Board determines that a designated operational entity no longer meets the accreditation standards, it may recommend to the COP/MOP to suspend or withdraw the entity's designation:
The Executive Board may recommend to the COP/MOP to suspend or withdraw the designation of a designated operational entity if it has carried out a review and found that the entity no longer meets the accreditation standards or applicable provisions in decisions of the COP/MOP. The Executive Board may recommend the suspension or withdrawal of designation only after the designated operational entity has had the possibility of a hearing. The suspension or withdrawal is with immediate effect, on a provisional basis, once the Executive Board has made a recommendation, and remains in effect pending a final decision by the COP/MOP. The affected entity shall be notified, immediately and in writing, once the Executive Board has recommended its suspension or withdrawal. The recommendation by the Executive Board and the decision by the COP/MOP on such a case shall be made public (3/CMP.1, Annex, paragraph 21).
Effect of suspension or withdrawal on registered project activities
Upon withdrawal or expiration of accreditation of an entity, the entity shall not continue any work on any CDM project activities, whether its accreditation expired or was withdrawn. The DOE shall inform any affected clients of the withdrawal or expiration of its accreditation status (EB 56, Annex 2, paragraphs 166 and 167).
Expiration or withdrawal of accreditation of a DOE shall not free the DOE from its contractual arrangements with its clients or with the UNFCCC secretariat including costs related to assessments conducted before expiration or withdrawal of accreditation of the DOE (EB 56, Annex 2, paragraph 168).
Registered project activities are not affected by the suspension or withdrawal of a DOE's designation, unless significant deficiencies are identified in the relevant validation or verification and certification report for which that DOE was responsible (3/CMP.1, Annex, paragraph 22). If significant deficiencies are identified:
- the Executive Board may appoint another DOE to review and correct them, and if excess CERs have been issued, the DOE must replace them (3/CMP.1, Annex, paragraph 22); and
- the costs of the review will be paid by the DOE whose designation has been withdrawn or suspended (3/CMP.1, Annex, paragraph 24):
Registered project activities shall not be affected by the suspension or withdrawal of designation of a designated operational entity unless significant deficiencies are identified in the relevant validation, verification or certification report for which the entity was responsible. In this case, the Executive Board shall decide whether a different designated operational entity shall be appointed to review, and where appropriate correct, such deficiencies. If such a review reveals that excess CERs were issued, the designated operational entity whose accreditation has been withdrawn or suspended shall acquire and transfer, within 30 days of the end of review, an amount of reduced tonnes of carbon dioxide equivalent equal to the excess CERs issued, as determined by the Executive Board, to a cancellation account maintained in the CDM registry by the Executive Board (3/CMP.1, Annex, paragraph 22).
Any costs relating to the review referred to in paragraph 22 above shall be borne by the designated operational entity whose designation has been withdrawn or suspended (3/CMP.1, Annex, paragraph 24).
Replacement credits provided by a DOE after suspension or withdrawal will be transferred to a cancellation account:
Where the accreditation of a designated operational entity has been withdrawn or suspended, ERUs, CERs, AAUs and/or RMUs equal to the excess CERs issued, as determined by the Executive Board, shall be transferred to a cancellation account in the CDM registry. Such ERUs, CERs, AAUs and RMUs may not be further transferred or used for the purpose of demonstrating the compliance of a Party with its commitment under Article 3, paragraph 1 (3/CMP.1, Annex, Appendix D, paragraph 8).
Project participants in affected projects have the opportunity for a hearing before the Executive Board makes recommendations on the suspension or withdrawal of a DOE's designation:
Any suspension or withdrawal of a designated operational entity that adversely affects registered project activities shall be recommended by the Executive Board only after the affected project participants have had the possibility of a hearing (3/CMP.1, Annex, paragraph 23).
Project participant initiated withdrawal
If a project participant has withdrawn prior to registration, the DOE must provide a letter and address this issue in the validation report
The Board agreed that where a project participant listed in the PDD published at validation is not included in the PDD submitted for registration, the DOE shall provide a letter from the withdrawn project participant confirming its voluntary withdrawal from the proposed project activity, and address this issue in its validation report (EB 30, paragraph 41).