Background information on Materiality under the CDM:

The CMP, at its seventh session, adopted decision -/CMP.7.

The SBSTA, at its thirty-fourth session took note of the submissions by Parties and the technical paper prepared by the secretariat and agreed to continue to consider the draft text contained in the annex of the document, FCCC/SBSTA/2011/L.11, at its thirty-fifth session.

The SBSTA, at its thirty-fourth also invited Parties, intergovernmental organizations, admitted observer organizations and designated operational entities to submit to the secretariat, by 19 September 2011 , their views on the issues stated in FCCC/SBSTA/2011/L.11.

The CMP, at its sixth session, requested the Subsidiary Body for Scientific and Technological Advice to consider the issue of materiality with a view to recommending a draft decision on this matter for adoption by the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol at is seventh session, it also invited Parties, IGOs and admitted observer organizations to submit to the secretariat by 28 March 2011, their views on this matter and requested the secretariat to compile the submissions into a miscellaneous document and to prepare a technical paper for consideration by SBSTA 34. (FCCC/SBSTA/2011/MISC.2, FCCC/SBSTA/2011/MISC.2/Add.1 and FCCC/TP/2011/4).

The CDM Executive Board (the Board), at its fifty-sixth meeting considered the possible introduction of the concepts of materiality and level of assurance. The Board agreed to the need for consultation with relevant stakeholders on this issue and to launch a call for inputs on this matter. This call was opened from 17 September 2010 to 15 October 2010 on the UNFCCC CDM website. The Board further agreed that a discussion related to the threshold and the scope of the application of materiality, and how to implement in practice the concept in CDM is required at a future meeting.

The CMP, at its fifth session, requested the Board to continue to update the CDM Validation and Verification Manual, including, by further exploring the possible introduction of the concepts of materiality and level of assurance, and to report to CMP 6.

The Board at its fifty-first meeting considered the concept of materiality and the impact of its application in CDM project activities. The Board agreed to reconsider the introduction of the concept of materiality and its use at a future meeting.

Background documentation on Materiality under the CDM:

• Decision -/CMP.7 - Materiality standard under the clean development mechanism;
• FCCC/SBSTA/2011/MISC.13 - Submissions from Parties and relevant organizations;
• FCCC/SBSTA/2011/L.11 - Draft conclusions proposed by the Chair;
• FCCC/TP/2011/4 - Technical Paper;
• FCCC/SBSTA/2011/MISC.2/Add.1 - Submissions from Parties and relevant organizations;
• FCCC/SBSTA/2011/MISC.2 - Submissions from Parties and relevant organizations;
• 3/CMP.6 - Further guidance relating to the Clean Development Mechanism (paras. 30, 31 and 32);
• Inputs received from the EB 56 call for inputs;
• Draft Standard on the use of the concept of materiality and level of assurance in the Clean Development Mechanism - EB 56, annex 2 of the annotations to the proposed agenda;
• 2/CMP.5- Further guidance relating to the Clean Development Mechanism (para. 22).

- Submissions from admitted non-governmental organizations (28 March 2011):

• International Emissions Trading Association (IETA)
• Project Developer Forum Ltd. (PD-Forum)

- Submissions from non-admitted observer organizations (28 March 2011):

• CDM Watch
• Designated Operational Entities and Independent Entities (D.I.A.))

- Submissions from admitted non-governmental organizations (19 September 2011):

• Project Developer Forum Ltd. (PD-Forum)

- Submissions from non-admitted observer organizations (19 September 2011):

• Designated Operational Entities and Independent Entities (D.I.A.)