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UN Emissions Board Seeks to Fix 'Deficiencies' in Auditor Plan
2010-10-15 06:50:10.184 GMT
By Mathew Carr
Oct. 15 (Bloomberg) -- The executive board of the Clean
Development Mechanism, the world's second-largest carbon market,
is seeking to fix "significant deficiencies" in a plan for
punishing audit firms that allow excessive issuance of credits.
Global climate talks planned for December in Cancun,
Mexico, should include revisions to a proposal to suspend audit
firms being investigated for allowing the issuance of too many
tradable credits, the Bonn-based board said yesterday in a
report posted on the website of the United Nations Framework
Convention on Climate Change.
The board wants the climate talk participants to reconsider
a plan to allow rival audit firms to "conduct the review or
correct" any oversupply of credits, the report said. It also
requested a rethink of a proposal to cancel credits within 30
days of the end of a review, it said.
The auditors, known as "designated operational entities" in
the 1997 Kyoto Protocol rules, include Det Norske Veritas Ltd,
TUEV SUED and Bureau Veritas SA. They are hired to validate
projects and check emissions savings in developing countries
that are financed by investors in exchange for tradable credits.
For Related News and Information:
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European power-markets home page: EPWR <GO>
--Editors: John Buckley, Alex Devine
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss on +44-20-7073-3520 or sev@bloomberg.net
