1. Purpose and Scope
The procedure stipulates the process of reviewing requests for application by project participants and contract review for validation or verification/certification activities of CEC, and the responsibility, content and method of contract review process, as well as the records archives.
The procedure is applicable for the control of the process of application review and contract review of validation or verification/certification.

2. Reference
CDM Accreditation standard v7.0
CDM validation and verification standard for project activities v3.0
CDM validation and verification standard for programmes of activities v3.0
CDM project standard for project activities v3.0
CDM project standard for programmes of activities v3.0
CDM project cycle procedure for project activities v3.0
CDM project cycle procedure for programmes of activities v3.0

3. Management Responsibilities
3.1 CI Division is responsible for:
•Maintaining the public information concerned of validation or verification/certification activities.
•Receiving and reviewing the requests for applications from authorized representatives of CDM PPs, implementing the contract review, and the contract management.
3.2. PI Division is responsible for the review of necessary auditor resources with required competence to take up the project and the implementation of contracted validation, verification and certification functions.
3.3. QA Division is responsible for the review of necessary technical reviewer resources with required competence to take up the project.
3.4. CDM Director is responsible for the approval of the contract review results and the modification of contract review results, and for verifying and signing of the validation or verification and certification contract.
3.5. CDM Quality Manager is responsible for supervising the contract implementation.

4. Management Process
4.1 Principle
(1)Follow the quality policy and management system, and to implement the management credibility, independently, impartially, transparently and with non-discrimination.
(2)The service is open to all the project participants/related organizations with no additional finance or other claims. CEC shall not offer priority to certain applicants for any interest, and shall not delay the application acceptance with any purposive excuse, and shall not take the scale of the applicant and whether the member of any association/organization as the consideration to provide the service.
(3)The application shall only be accepted within the sectoral scopes accredited and designated by EB COP/MOP.
(4)Identify and analyze any activity/service that might compromise the independence and impartiality of the validation or verification/certification for CDM PA/PoA/CPA, and do not perform such activity/service.
(5)CEC signs legally enforceable contracts only with project participants/CMEs beyond other entities for validation or verification/certification activities; All contracts shall be in the name of CEC.
(6)All records pertaining to contracts, including the results of contract reviews should be held securely and safely to preserve all confidential information.
(7)The conditions in contracts with project participants/CMEs shall not link their payments to CEC to the nature of the validation or verification opinion.
4.2 Requirements for validation or verification/certification application
4.2.1 Acceptance of requests for applications
CI Division shall make publicly available the Application Form for Validation or Verification and Certification and other latest public documents to the authorized representatives of CDM PPs including:
(1)CEC introduction (including CEC organizational chart)
(2)Introduction of CDM Department
(3)Quality Policy and Quality Objectives
(4)CEC Impartiality Policy and Statement
(5)The list of sectoral scopes approved
(6)List of CDM projects performed by CEC
(7)Working Process of Validation and/or Verification/Certification
(8)Working Process for Complaints, Disputes and Appeals
(9)The Rights and Responsibilities of Both Parties (Party A and Party B)
(10)The further information requested by the applicant, which could be provided
4.2.2 Application submission
The following essential information should be provided by authorized representatives of CDM PPs:
(1)The draft PDD of the CDM PA/PoA-DD/ of the CDM PoA/CPA that defines project boundaries and sites included in assessment, the nature of the data needed for validation or verification/certification, the baseline and monitoring methodology(ies) applied.
(2)The information of the project participants or CME, host Party and its DNA.
(3)Information about persons or organizations engaged in identification, development, and consultancy and financing of the PA/PoA/CPA.
(4)Scope of validation or verification and certification.
(5)Contract period and liability condition.
(6)Other information of the PA/PoA/CPA.
4.3 Contract review
4.3.1 General requirements
According to CDM project cycle procedure for project activities, CDM project cycle procedure for programmes of activities, the followings shall be paid attention before submitting a proposal/quotation to a potential client and entering into a contract for the validation or verification activity:
(1)For validation
i.For the validation of renewal of crediting period of CDM PA, if CEC has performed verification for the registered CDM PA, CEC shall not perform the validation for renewal of crediting period for the same registered CDM PA, unless the CDM PA is a registered small-scale CDM project activity or a registered small-scale A/R CDM project activity or CEC is authorized by the Board to do so in accordance with the “CDM project cycle procedure for project activities”. Adequate justification shall be demonstrated for the authorization.
ii.For the validation of renewal of PoA period, if CEC has performed verification for the registered CDM PoA, CEC shall not perform this validation for the same registered CDM PoA, unless CEC is authorized by the Board to do so in accordance with the “CDM project cycle procedure for programmes of activities”. Adequate justification shall be demonstrated for the authorization.
iii.For the validation of renewal of crediting period of a CPA, if CEC has performed verification for the same CPA, CEC shall not perform this validation for the same CPA unless CEC is authorized by the Board to do so in accordance with the “CDM project cycle procedure for programmes of activities”. Adequate justification shall be demonstrated for the authorization.
(2)For verification
i.For verification of a registered CDM PA, if CEC has performed validation (including for registration or renewal of crediting period) for the registered CDM PA, and wishes to perform this verification for the same project, CEC shall obtain authorization to do so from the Board in accordance with the “CDM project cycle procedure for project activities”, adequate justification shall be demonstrated for the authorization. CEC may perform verification without obtaining authorization from the Board to do so for: (a) A registered small-scale CDM project activity or a registered small-scale A/R CDM project activity for which CEC has performed the such validation activity;(b) Any registered CDM PA for which CEC has performed the validation of post-registration changes.
ii.For verification of a registered CDM PoA, if CEC has performed validation for registration or renewal of PoA period, or inclusion or renewal of crediting period of any of the CPAs covered by the verification, and wishes to perform verification for the same PoA, CEC shall obtain authorization to do so from the Board in accordance with the “CDM project cycle procedure for programmes of activities”. CEC may perform verification without obtaining authorization from the Board to do so for a registered PoA for which CEC has performed validation of post-registration changes of the PoA or any of the CPAs covered by the verification.
4.3.2 Before submitting a proposal/quotation to a potential client and entering into a contract for the validation or verification /certification of a CDM PA or PoA/CPA, CI Division conduct the contract review regarding the following consideration:
(1)Check and confirm the Application Form having application date and signed by the authorized representative.
(2)Assess impartiality including risks from related body and the pre-supposed team members by communicating with the applicant, this is performed through Impartiality Analysis and Assessment Form.
(3)Assess whether the required information has been obtained, especially the methodology applied to the proposed PA or PoA.
(4)Assess whether the mandatory sectoral scopes, conditional sectoral scopes and the applicability of conditional sectoral scopes linked to the methodology and technology applied to the proposed PA or PoA fall within CEC’s accredited sectoral scopes.
(5)Review whether the sectoral scope(s)（including mandatory sectoral scope and conditional sectoral scope）and technical area has been correctly identified in the application form. If the sectoral scope and technical area are identified to be incorrect, CI Division shall inform the applicant timely and markup in the application form accordingly.
4.3.3 Before submitting a proposal/quotation to a potential client and entering into a contract for the validation or verification/certification of a CDM PA or PoA/CPA, PI Division conducts the contract review including the following consideration:
（1）Whether CEC has necessary human resources with required competence to take up the project: the number of available auditors in the technical area, and whether these auditors are competence qualified based on CEC internal management requirement in the specific technical area should be assessed; PI Division presupposes the validation/verification team members and make sure the competence of the presupposed validation/verification team collectively meet the competence requirements of CEC internal management;
(2) PI Division provides the presupposed v/v team members to CI Division before entering into contract, and then CI Division communicates the members to the applicant to identify the potential conflict of interest from the presupposed team members;
(3) Whether the considerations such as location(s) of the applicant organization’s operations, time required completing the project and any other issues influencing the validation/verification such as language, safety conditions, etc., have been taken into account.
4.3.4 QA Division conducts the contract review including reviewing of necessary technical reviewers with required competence to take up the project: The number of current technical reviewers in the technical area, whether these technical reviewers are competence qualified based on CEC internal management requirement in the specific technical area should be assessed, to make sure the competence of the technical reviewer team collectively to be assigned meet the competence requirements of CEC internal management.
4.3.5 Necessary human resources with required competence in above 4.3.2-4.3.3 shall be assessed prior to accepting the specific project for the validation/verification. The required competence for these human resources is defined in the Procedure for Human Resources Management CEC-3004C. The assessment information of human resource should be filed in the Contract Review Form.
4.4 Contract approval
Before entering into a contract with a project participant for the validation or verification/certification, the CDM Director shall sign the Contract Review Form to approve the contract review result, and after the contract review, the CDM Director shall sign the CDM Service Contract, which is legally enforceable contract and in the name of CEC.
4.5 Contract implementation and supervision
PI Division is responsible for the contract implementation. CDM Quality Manager is responsible for the supervision of contract implementation.
4.6 Contract termination
In case of following situations occurred, the Contract is automatically terminated. CEC will disclose the termination information on its official website within 30 working days:
1) Party A or the project participant (PP) is bankrupt then it has no ability to implement the contract. The contract termination is into force on the day that Party B confirms this bankrupting through public information.
2) Party A or the project participant (PP) does not give any response on the CARs & CLs issued by Party B for the v/v activities agreed in the contract, the contract is terminated automatically on the day ONE year later than the day CARs & CLs submitted to Party A.

Note：This information is publicized in both English and Chinese. In the event of any conflict or ambiguity or discrepancy between the two versions, the Chinese version shall prevail.