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(1) Implement monitoring activities<br />

As shown in Figure 1-8, the first step that project participants must take to ensure issuance of CERs as<br />

planned is to properly implement the monitoring activities according to the monitoring plan stated<br />

in the registered PDD, since it is a condition for verification, certification and the issuance of CERs<br />

[CDM M&P, para. 57-58].<br />

Project participants then prepare a monitoring report for the period they would like to have verified<br />

and CERs issued. The length of such period can vary according to the interests of project participants.<br />

For example, the lengths of verified periods of CERs that have already been issued range from one<br />

month to seven years. A monitoring report covers all the items contained in the monitoring plan, as<br />

shown below:<br />

(a) The collection and archiving of all relevant data necessary for estimating or measuring GHG<br />

emission occurring within the project boundary during the crediting period;<br />

(b) The collection and archiving of all relevant data necessary for determining the baseline of GHG<br />

emission within the project boundary during the crediting period;<br />

(c) The identification of all potential sources of, and the collection and archiving of data on,<br />

increased GHG emission outside the project boundary that are significant and reasonably<br />

attributable to the project activity during the crediting period;<br />

(d) The collection and archiving of information relevant to the provisions in paragraph 37 (c) (of<br />

the CDM M&P, regarding the analysis of the environmental impacts of the project activity);<br />

(e) Quality assurance and control procedures for the monitoring process;<br />

(f) Procedures for the periodic calculation of the GHG emission reductions by the proposed CDM<br />

project activity, and for leakage effects; and<br />

(g) Documentation of all steps involved in the calculations of emission reductions and leakage.<br />

[CDM M&P, para. 53].<br />

(2) Provide monitoring report to DOE for verification and certification<br />

A DOE verifies and certifies the emission reductions achieved during the period covered by the<br />

monitoring plan. Project participants must select and contract a DOE different from the one that<br />

undertook validation of the corresponding project. In case of small scale CDM project activities, the<br />

same DOE may undertake validation, and verification and certification.<br />

The monitoring report forms the basic document for the verification process. It should ideally address<br />

the following and must be in line with the monitoring plan of the registered PDD:<br />

(a) Project performance data<br />

(b) Project and baseline emission factors<br />

(c) Documentation of GHG emission reduction calculations<br />

(d) Leakage<br />

The UNFCCC guidelines do not specify any specific format in which the monitoring report is to be<br />

prepared. It is left to the project participant to formulate their own format. Based on best practices,<br />

the following are desirable to ensure a complete and concise monitoring report:<br />

(a) A cover page<br />

(b) A contents page<br />

(c) An introduction<br />

(d) A list of the references<br />

(e) A brief description of the CDM project activity<br />

(f) Monitoring parameters<br />

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