The Threat of DOE Liability
7th June 2011 by Madlen King
Madlen King, Global Head of Climate Change & Sustainability Lloyd’s Register Quality Assurance (LRQA)
A key issue for CDM going forward is a move from the CDM Executive Board; they are planning to make the DOE’s liable for any over issuance of CDM credits that happens from any of the projects that they verify. And that is obviously creating serious concerns in the DOE’s and it may result in some DOE’s withdrawing from the market entirely and it also presents a significant problem for a market which is already seriously resource constrained. The discussions on how that proposal will be applied continue with the CDM Executive Board and the DOE’s have certainly responded to the consultations about the proposals. I’m very much against the liability but we continue to monitor the situation and continue to try and understand what might happen going forward and the impact on the services that DOE’s are offering.
In the event that this situation arises, DOEs would need to review their terms and conditions that are signed with organisations to cover their own liabilities and that may have serious knock-on implications on how DOEs carry out validations and verifications and also which customers we may choose to work with and which areas and technologies that we might chose to work in.
Madlen King is the Global Head of Climate Change & Sustainability. She ensures the technical integrity of LRQA climate change and sustainability services and liaises with external bodies and governments on climate change. Within this role, Madlen is responsible for the service design, delivery and maintenance of accreditations for all GHG validation and verification schemes [...]