The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, at its first session, elaborate modalities and procedures with the objective of ensuring transparency, efficiency and accountability through independent auditing and verification of project activities.
The modalities and procedures for a clean development mechanism were elaborated by the Conference of the Parties (COP) prior to the entry into force of the Kyoto Protocol, and were subsequently adopted by the Conference of the Parties serving as the meeting of the Parties (COP/MOP) at its first meeting in 2005. Separate modalities and procedures exist for large-scale, small-scale, forestry and small-scale forestry projects.
The modalities and procedures provide for transparency, efficiency and accountability through:
- the process for approval and use of methodologies;
- the independent verification and certification of emission reductions from project activities; and
- oversight by the Executive Board of key processes, including registration and review.
The modalities and procedures provide for a system of methodologies for project activities, which must be approved by the Executive Board on the recommendation of the Meth Panel before they are used. The approval process includes a procedure for public display and receiving comments on the methodology and consideration by independent experts. For small-scale projects, the process is streamlined through the provision of top-down establishment of methodologies which may be adopted by project activities in each of the various categories.
These DOEs are independent of the project and provide an expert appraisal of the eligibility of the project and the credibility of emission reductions. The validation, verification and certification reports produced by DOEs are subject to public comment and scrutiny by the Executive Board.
The Executive Board, an independent body of nominated individuals from Parties. They are appointed from different regional groups and Party categories (both Annex I and non-Annex I) oversees the CDM and has the power in certain circumstances to order a review of registration or issuance to ensure the integrity of CDM project activities and the credibility CERs being issued. The reports of the Executive Board must be made public via the UNFCCC website by the secretariat.
The Executive Board meets at least three times per year and its meetings are open to all Parties, UNFCCC accredited observers and stakeholders as observers (unless otherwise decided by the Executive Board).