Proposed Text for Appendix B, Part Three of the Chairman's Note: Procedures for Registration*1

Submission by Australia, Canada, Iceland, Japan, NewZealand, Norway, Russian Federation, Ukraine, and the United States

31 January, 2000

General Steps and Documentation Required for Registering a CDM Project

1.1 Registration is the formal acceptance of a project activity as a CDM project.

1.2 Registration will be performed by an accredited Operational Entity under a contractual arrangement with project Participants.

1.3 All projects that are to be registered must be described in detail in a written project proposal submitted to the Operational Entity. The project proposal shall include:

    1. a letter from the designated point of contact in [each Party involved][the host Party] indicating formal acceptance of the proposed project;
    2. a baseline for assessing emissions additionality and calculating emission reductions and/or enhancement of removals by sinks that has been developed in accordance with modalities and procedures specified in Appendix A;
    3. estimated emissions and/or removals resulting from the proposed project activities;
    4. provisions for monitoring and reporting emissions by sources and/or enhancement of removals by sinks resulting from the project activity, in accordance with Appendix C; and,
    5. specified project information that includes the location, name of participants, and a description of the project.

Specific Requirements of Participants and Institutions

2 The Host Party will be required to undertake the following functions:

2.1 Designate a point of contact for the submission of project proposals and their review and approval by host Party authorities.*2

2.2 Cooperate as appropriate with project Participants in providing access to or generating necessary data for the formulation of baselines. These data may be supplied by other entities as appropriate.

2.3 Consider the project proposal to confirm that it assists in achieving sustainable development of the Host Party.

2.4 Provide to the project Participants a formal letter of approval from the designated point of contact to demonstrate host Party acceptance of the project proposal, including its determination that the project proposal assists in achieving sustainable development. This documentation will be required before any project proposal may be reviewed by an Operational Entity.*3

3 The Operational Entity will be required to undertake the following functions:

3.1 Receive project proposals from eligible project Participants.

3.2 Review the project proposal and supporting documentation once a request to register a CDM project activity has been received from the project Participants, in order to confirm whether:

    1. voluntary participation has been approved by [the host Party][each Party involved] in the form of a formal letter of approval;
    2. the project proposal contains a baseline, developed in accordance with modalities and procedures specified in Appendix A;
    3. the project activity would provide a reduction in emissions by sources, or an enhancement of removals by sinks that is additional to any that would occur in the absence of the proposed project activity, and contribute to real, measurable, and long-term benefits related to the mitigation of climate change;
    4. the project proposal contains adequate provisions for monitoring and reporting emissions by sources and/or removals by sinks based on modalities and procedures specified in Appendix C; and
    5. any additional information required to demonstrate conformance with relevant modalities and procedures.

3.3 Ensure that proprietary information submitted in the project proposal is held in confidence.

3.4 Register each CDM project activity that meets the requirements of paragraph 3.3, as a prerequisite for certification and issuance of CERs accruing from that project activity. Notification of this registered status will be made to the project Participants, involved Parties, and the Executive Board upon completion of the registration phase.*4

3.5 In the case that a project is not initially registered, inform the project Participants and involved Parties of this decision. This decision will explain the reasons for non-acceptance as well as any additional information that would be required in a revised submission of the project proposal.

3.6 Operational Entities may accept revised project proposals for review in the case that a project was not initially registered.

4 The Executive Board will be required to undertake the following functions:

4.1 Ensure that a database of all registered CDM projects is maintained.

4.2 Ensure that pertinent non-confidential information on baselines and monitoring that are used in project proposals are maintained, updated and made publicly available.

    *1 Other delegations have also used the term 'validation' to describe this stage of CDM project development.

    *2 The other option would be to impose a similar obligation on Annex 1 Parties involved in CDM projects, as implied in the first bracket of the paragraph 1.3a.

    *3 See footnote to para 2.1 above.

    *4 The Parties will need to consider what mechanisms and procedures may be needed to provide for comments to Operational Entities, and to address questions concerning decisions made by Operational Entities during the registration phase.