Öko-Institut develops audit company rating


CDM project validation in need of improvement

The Clean Development Mechanism (CDM) allows industrialized countries and companies under the European Emission Trading Scheme to meet a part of their commitments by investing in climate change mitigation projects carried out in developing countries. Such projects must be validated by independent audit companies, called Designated Operational Entities (DOEs). In a study published today, performed on behalf of WWF, the Öko-Institut has produced a rating system for DOEs. The rating is based on the frequency with which projects that were considered satisfactory in the validation report produced by the DOE were in fact found to be faulty or were even rejected by the UN approval authority.

“Overall, the auditing of projects remains seriously deficient”, says lead author Lambert Schneider of the Öko-Institut. In more that 50 percent of cases in which auditors give the thumbs-up for a project, the UN demands corrections or even rejects the project outright. DOEs are rated on a scale from A (best mark) to F (worst mark). Of the five companies rated, TÜV-Nord and TÜV-Süd get a D mark – which is the best in the field. The study is available for download free of charge here. A summary is here


Lambert Schneider

Öko-Institut, Berlin Office
Staff researcher, Energy & Climate Protection Division
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