This document contains a recommendation by the Executive Board of the clean development mechanism (CDM) in response to a mandate contained in decision 8/CMP.7 to revise the draft procedure to address significant deficiencies in validation, verification and certification reports, for adoption by the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol at its eighth session. It describes a draft procedure for assessing and attributing liability for significant deficiencies in validation, verification or certification reports that are caused by the professional negligence or fraud of a designated operational entity (DOE) and provides a process for correcting those significant deficiencies. The procedure also prescribes the administrative steps to be followed by DOEs and others, including the CDM Executive Board and UNFCCC secretariat, in making or responding to a submission identifying potential significant deficiencies