DNV GL ceases to provide validation and verification services for CDM
Due to the current downturn in international carbon markets, without signs of a recovery in the foreseeable future, DNV GL has decided to cease providing validation and verification services for CDM projects and other international climate change mitigation projects, the company said in its press release.
DNV GL has been a pioneer in the validation and verification of Clean Development Mechanism (CDM) projects and other international climate change mitigation projects and is the largest verifier of CDM project activities.
Recently, the price of carbon credits on the international carbon market has dropped to a level that no longer provides incentives to invest in climate change mitigation projects. The number of projects has decreased to less than one-tenth of the volume seen 1 year ago. As a consequence of this downturn in the carbon market, DNV GL has had to significantly reduce its activities and thus resources. The current volume of work is no longer sufficient to support the number of qualified staff needed to meet accreditation requirements.
As DNV GL sees no visible signs of a recovery in the foreseeable future, DNV GL has thus made the strategic decision to cease providing validation and verification services for CDM projects and other international climate change mitigation projects. DNV GL believes that it can have a better impact for a safe and sustainable future by providing other climate change services and focusing on new initiatives.
“We will continuing to offer climate change mitigation services and engaging in local and regional initiatives, such as the EU and Californian emission trading schemes, DNV GL is building positions related to carbon footprinting and labelling. Support also continues for the transfer and successful deployment of climate change mitigation technologies trough, for example, our engagement in the UNFCC Climate Technology Centre and Network (CTCN). There is also strengthened focus on climate change adaptation, which we believe will be increasingly important going forward” says Bjørn K. Haugland, Chief Sustainability Officer DNV GL Group and adds “with more than 3000 experts world-wide working with renewable energy and power transmission & distribution we have a strong commitment on supporting the transition to a low carbon future”.
The cease of providing validation and verification services will not be immediate. While not taking on new projects, DNV GL will, to the extent possible, try to minimize the consequences for customers.