The report of the Executive Board of the clean development mechanism (CDM) for 2003–2004 (FCCC/CP/2004/2) covers work undertaken from November 2003 until early September 2004. This addendum to the report provides additional information to the Conference of the Parties (COP), for consideration at its tenth session, on progress made in the period from September to December 2004 towards the implementation of the CDM during its third year of operation. This addendum contains further information on developments relating to the registration of CDM project activities, notably the registration of the first CDM project activity on 18 November 2004, the accreditation of operational entities, the approval of new methodologies for baselines and monitoring, and the CDM registry. It seeks guidance from the COP on the approach to be taken with regard to methodological issues of relevance to both the Convention and the Kyoto Protocol on the one hand and the Montreal Protocol on the other. It recommends amendments to the rules of procedure of the CDM Executive Board, which could be included in the COP decision providing guidance to the Executive Board of the CDM. In addition to providing additional information on measures taken to ensure the transparent functioning of the CDM and on modalities for attendance by observers at CDM Executive Board meetings, this addendum describes activities planned for 2005 and resources required to ensure the efficient and cost-effective functioning of the CDM. The Chair of the Executive Board, Mr. John Shaibu Kilani, will present the report and the addendum to the COP.