Track 2 verification

Projects undertaken in host Parties that do not meet the eligibility criteria in 9/CMP.1, Annex, paragraph 21 are subject to verification by an accredited independent entity (AIE) according to the Track 2 process described in 9/CMP.1, Annex, paragraphs 30-45.

Verification process

The Track 2 rules require that the AIE verify the emission removals achieved by the project upon receipt of the monitoring report from project participants, provided that the emission reductions were monitored and calculated in accordance with the rules:

The accredited independent entity shall, upon receipt of a report referred to under paragraph 36 above, make a determination of the reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks reported by project participants in accordance with appendix B below, provided that they were monitored and calculated in accordance with paragraph 33 above (9/CMP.1, Annex, paragraph 37).

When making a determination, the AIE must indicate verifications that overlap and explicitly indicate whether the verified emissions reductions have already been covered by this overlap.

As part of the determination of emission reductions or enhancements of removals in accordance with paragraph 37 of the JI guidelines (hereinafter referred to as verification), the AIE shall:

  1. Clearly indicate any verifications for the same project covering (part of) the same monitoring period that are already final in accordance with paragraph 39 of the JI guidelines; and
  2. Explicitly indicate whether the verified emission reductions or enhancements of removals in question were already covered by any verification mentioned in paragraph 8 (a) above (JISC 13, Annex 13, paragraph 8).

When submitting a verification for consideration by the JISC, the AIE must include in its verification opinion a statement confirming that the reductions of anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks reported by project participant are accurate and free of material errors, omissions, or misstatements. The AIE may issue a positive verification opinion only if it can confirm that the monitoring report, data collected, and other evidence supporting the reductions of anthropogenic emissions by sources, or enhancements of anthropogenic removals by sinks have not exceeded the following materiality thresholds:

  1. 5% margin of error for projects with annual average emission reductions less than 100,000 tonnes;
  2. 2% margin of error for projects with annual average emission reductions at or above 100,000 tonnes.

The Standard for Applying the Concept of Materiality in Verification is available here.

The verification by the AIE must be made publicly available through the secretariat:

The accredited independent entity shall make its determination under paragraph 37 above publicly available through the secretariat, together with an explanation of its reasons (9/CMP.1, Annex, paragraph 38).

The AIE makes its verification publicly available by submitting to the secretariat the JI verification report form (F-JI-VRep).  This form was first adopted by the Joint Implementation Supervisory Committee (JISC) at its fourth meeting (JISC 4, Annex 12).  The current version (Version 2) is available on the UNFCCC website here.

The guidelines for public availability are set out in the Procedures on public availability of documents under the verification procedure under the Joint Implementation Supervisory Committee.  This document was adopted in draft form by the JISC at its second meeting (JISC 2, Annex 2).  Version 1, adopted by the JISC at its fourth meeting (JISC 4, Annex 13) is available on the UNFCCC website here.

The JISC provided further clarification on these Procedures in the Clarification regarding the public availability of documents under the verification procedure under the Joint Implementation Supervisory Committee.  This document was first adopted by the JISC at its sixth meeting (JISC 6, Annex 9).  The latest version (Version 2) was adopted by the JISC at its eighth meeting (JISC 8, Annex 6) and is available on the UNFCCC website here.

At its 19th meeting the JISC adopted the JI Determination and Verification Manual (DVM).  The document does not introduce any new mandatory provisions for determination or verification (JISC 19, paragraph 24), but it does provide detailed guidance on every step that AIEs should undertake in assessing whether track 2 projects comply with current CMP and JISC requirements.  The DVM is designed to assist AIEs in undertaking determinations and verifications in a systematic manner.  The DVM is available on the UNFCCC website here.

JISC appraisal

The JISC appraises the verification report submitted by the AIE, according to the appraisal process set out in the Procedures for appraisals of determinations under the verification procedure under the Joint Implementation Supervisory Committee. This document was adopted by the JISC at its fourth meeting (JISC 4, Annex 10) and is available on the UNFCCC website here.

The assigned JISC members will complete the JI Verification Appraisal Form (F-JI-VRep) (Version 2) appraisal and forward it to the other members of the JISC via the secretariat.  The appraisal will state whether, in the opinion of the JISC members conducting the review, the project meets the criteria for verification.

Final verification and review

The verification by the AIE is deemed final 15 days after the date on which it is made public, unless a review is requested by a Party involved or three members of the JISC (9/CMP.1, Annex, paragraph 39).  A review is requested by completing and submitting the JI Verification Review Form (F-JI-VR) (Version 2), which can be accessed here.  Such a review may be requested, for example, if the appraisal by the assigned JISC members indicates that the project does not meet the criteria for verification.

If such a review is requested, the JISC shall:

  1. At its next meeting or no later than 30 days after the formal request for the review decide on its course of action.  If it decides that the request has merit, it shall perform a review;
  2. Complete its review within 30 days following its decision to perform the review;
  3. Inform the project participants of the outcome of the review, and make public its decision and the reasons for it (9/CMP.1, Annex, paragraph 39).

If a review is requested, it will be conducted in accordance with the Procedures for reviews under the verification procedure under the Joint Implementation Supervisory Committee. This document was originally adopted by the JISC at its third meeting (JISC 3, Annex 3).  The current version (Version 3) was adopted by the JISC at its nineteenth meeting (JISC 19, Annex 3) and is available on the UNFCCC website here.

The review team shall consist of two JISC members, including alternate members, who will be responsible for supervising the review.  One JISC member/alternate member of the review team shall be identified as lead member of the team and will be responsible for, inter alia, drafting the final recommendation of the team to the JISC.

During the review, the JISC may request a clarification or further information from the project participant/coordinating entity and/or the AIE, using the Form for Request for Clarification and/or further information (F-JI-Clar) (Version 2), which can be accessed here.

The Review Team drafts its final recommendation to the JISC by completing the Form for Report by Review Team (F-JI-RRep) (Version 2) and submitting it to the JISC for consideration.

Verification fee

A fee (the verification fee) is payable to the JISC for the processing of verification reports.  This fee is in addition to the consultancy fees charged by the AIE for conducting the verification.

The fee payable is USD 0.10 for the first 15,000 tonnes of carbon dioxide equivalent (CO2-e), and USD 0.20 per tonne thereafter. 

These rules are set out in the Provisions for the charging of fees to cover administrative costs relating to the activities of the Joint Implementation Supervisory Committee.  Version 1 of this document was adopted by the JISC at its fourth meeting (JISC 4, Annex 16) and approved by the COP/MOP at its second meeting (2/CMP.2, paragraph 16(b)).  The document has been revised on two occasions:

(1) following the decision of the COP/MOP at its second meeting (3/CMP.2, paragraph 8) to incorporate preferential treatment for small-scale projects; and

(2) following the decision to incorporate preferential treatment of joint implementation small-scale projects regarding advance payments.

The revised version (Version 3), was adopted by the JISC at its eighteenth meeting (JISC 18, Annex 9) and is available here:

Fee for processing of verification reports:

  1. USD 0.10 per tonne of CO2 equivalent of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks for the first 15,000 tonnes of CO2 equivalent generated by the project in question in a given calendar year;
  2. USD 0.20 per tonne of CO2 equivalent of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks for any amount in excess of 15,000 tonnes of CO2 equivalent generated by the project in question in a given calendar year, except as noted in (iii) below;
  3.  For joint implementation programmes of activities, the fee in accordance with paragraph 1(b)(i) shall apply to all reductions of anthropogenic emissions by sources or enhancements of removals by sinks in a given calendar year.

    (Provisions for the charging of fees to cover administrative costs relating to the activities of the Joint Implementation Supervisory Committee, JISC 18, Annex 12, paragraph 1(b)).

An upfront fee (the determination fee) equal to the estimated amount due for the verification fee for the first year of the project is payable when a determination report (relating to the eligibility of a project under the JI rules) is submitted to the secretariat.  However, no fee is payable in respect of small-scale projects or projects with an expected annual generation of 15,000 tonnes CO2-e or less.

The COP/MOP requested that the JISC report annually on the revenue raised through the charging of fees for the processing of verification reports and the accreditation of independent entities, with a view to reviewing these arrangements if required:

The Conference of the Parties serving as the meeting of the Parties: ...

  1. Requests the Joint Implementation Supervisory Committee, with the assistance of the secretariat, to report annually to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol on the revenue received by the secretariat from the charging of fees to cover administrative costs relating to the activities of the Committee, with a view to reviewing these arrangements as necessary (3/CMP.2, paragraph 17).

Clarification of Verification

Requests for clarification under the verification procedure may be made to the JISC however the request must only concern issues of general relevance for the Track 2. It should not include project specific references. The Procedures For Requests For Clarification Under The Verification Procedure Under The Joint Implementation Supervisory Committee (JISC 13, Annex 11) may be found here.

Withdrawal of Submissions

An AIE may withdraw a published PDD from the verification process by submitting a written signed statement to the secretariat. Once withdrawn the PDD cannot be used as the basis for determinations however they will remain on the UNFCCC JI Website for public viewing.

If a corresponding determination has already been submitted, the project participants must withdraw the determination. In the case that a positive determination is not yet finalised however the AIE may apply to withdraw the determination.

Published PDDs may be withdrawn by the submitting (accredited) independent entity (IE), unless a corresponding determination has already been submitted (JISC 13, Annex 12, paragraph 4).

In order to withdraw a PDD in accordance with paragraph 4 above, the IE shall send a written, duly signed statement to this effect to the secretariat via email (ji-info@unfccc.int or secretariat@unfccc.int) or fax (+49 228 815 1999) (JISC 13, Annex 12, paragraph 5).

Published positive determinations may be withdrawn by the project participants in accordance with the relevant modalities of communication via email (ji-info@unfccc.int or secretariat@unfccc.int) or fax (+49 228 815 1999), unless the positive determination is not yet final in accordance with paragraph 35 of the JI guidelines. In the latter case, a written, duly signed withdrawal statement shall be sent to the secretariat by the submitting accredited IE via email (ji-info@unfccc.int or secretariat@unfccc.int) or fax (+49 228 815 1999) (JISC 13, Annex 12, paragraph 7)

Determinations withdrawn pursuant to paragraph 7 above, as well as the corresponding PDDs, shall be marked accordingly on the UNFCCC JI website and cannot be used as the basis for further submissions (in particular monitoring reports and verifications) (JISC 13, Annex 12, paragraph 8).

In the case of a corresponding determination or a positive determination that is not yet finalised, payment that was paid in advance for verification processing fees above USD 30,000 will be reimbursed. Administrative costs however will be deducted. The beneficiary of the refund and an account number should be included in the email withdrawing the determination.

If a determination is withdrawn pursuant to paragraph 7 above before a verification is submitted, any advance payment on the fee for processing of verification reports above USD 30,000 shall be reimbursed in accordance with the provisions for the charging of fees to cover administrative costs relating to the activities of the JISC. In this case the withdrawal request referred to in paragraph 7 above shall include the beneficiary of the remittance and relevant account information (JISC 15, Annex 7, paragraph 9).

Advance payment will also be refunded, with administrative costs deducted, if the published submission is not accepted as a final positive determination.

Published monitoring reports may also be withdrawn by project participants by email unless a corresponding verification has already been submitted.

Published monitoring reports may be withdrawn by the project participants in accordance with the relevant modalities of communication via email (ji-info@unfccc.int or secretariat@unfccc.int) or fax (+49 228 815 1999), unless a corresponding verification has already been submitted (JISC 13, Annex 12, paragraph 13).

In the case of a submitted verification that has not been published, it may be withdrawn and the paid processing fee refunded, minus administrative costs.

In the case of a published verification withdrawn before the end of the requesting for review period, it may be withdrawn by way of a written, duly signed statement sent to the secretariat, and any fees not covered by an advance payment shall not be reimbursed (JISC 15, Annex 7, paragraph 16).

A verification which has been deemed final cannot be withdrawn (JISC 15, Annex 7, paragraph 17).

Last updated on 21 December 2010

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