Registration fee

A registration fee is payable by project proponents in order to have a project considered for registration (EB 5, paragraph 23).

The registration fee is an upfront payment, equivalent to the amount due for the Administration Share of Proceeds in respect of the expected average annual certified emission reductions for the proposed project activity over its crediting period as identified in the project design document and as validated by the designated operational entity (EB 54, Annex 29, paragraph 5). The amount paid as a registration fee is deducted from the Administration Share of Proceeds that is due at the time of the issuance of the first year's certified emission reductions (CERs). This was decided at EB 6:

The registration fee paid will be deducted from the share of proceeds for administration due at issuance of CERs (EB 6, Annex 5)

and clarified further in the Guidelines on the Registration Fee Schedule for Proposed Project Activities under the Clean Development Mechanism:

The registration fee shall be deducted from the share of proceeds due for issuance of the certified emission reductions. In effect, the registration fee is an advance payment of the share of proceeds due for the issuance of certified emission reductions likely to be achieved during the first year (EB 55, Annex 29, paragraph 14).

The Guidelines on the Registration Fee Schedule for Proposed Project Activities under the Clean Development Mechanism (Version 2) was adopted at EB 54, Annex 29 and revises EB 52, Annex 53.

How much is the registration fee?

The registration fee which has applied since February 2010 (EB 52, paragraph 53) is calculated using the following scale:

a. USD 0.10 per certified emission reduction issued for the first 15,000 tonnes of CO2 equivalent for which issuance is requested in a given year;

b. USD 0.20 per certified emission reduction issued for any amount in excess of 15,000 tonnes of CO2 equivalent for which issuance is requested in a given year; and

c. No share of proceeds shall be due for project activities hosted in least developed countries. The application of this exemption shall be based on the status of the country on the date of the publication of the request for issuance of certified emission reductions (EB 54, Annex 29, paragraph 4).

The fee that is actually payable is based on an average of the estimated annual quantities of CERs that will be generated over the crediting period, as set out in the PDD:

The registration fee shall be the share of proceeds applied to the expected average annual emission reductions for the proposed project activity over its crediting period, as identified in the project design document and as validated by the designated operational entity (DOE) (EB 54, Annex 29, paragraph 5).

For example, if the project is expected to generate 1,000,000 CERs over a ten-year crediting period:

  • the average annual emission reduction quantity would be 100,000 CERs; and
  • the registration fee payable would be USD 18,500, calculated as:
  • USD 0.10 multiplied by 15,000 CERs, plus
  • USD 0.20 multiplied by 85,000 CERs.

If the project had an increasing CER yield over time so that only 50,000 CERs were generated in each of the first two years and greater quantities were generated towards the end of the crediting period, the same registration fee would still be payable. However, the registration fee would be applied against each annual payment of the share of proceeds for administration until fully recovered. In this case, therefore, no further payment would be required in respect of the share of proceeds for administration until the third year of the crediting period.

The Executive Board has issued some qualifications to the above calculations:

The maximum registration fee payable is capped at USD 350,000 (EB 54, Annex 29, paragraph 8).

No registration fee has to be paid for CDM project activities with expected average annual emission reduction over the crediting period below 15,000 t CO2-equivalent (EB 54, Annex 29, paragraph 9).

No registration fee must be paid until after the date of the first issuance of certified emission reductions in countries with fewer than 10 registered CDM project activities. The application of this exemption shall be based on the number of registered CDM projects in the country on the date of the submission of the request for registration.

Reimbursement of the registration fee

The Executive Board had initially stated that that the registration fee would be non-reimbursable (EB 5, paragraph 23). However, it has since clarified that:

The registration fee shall be reimbursed in full if the DOE withdraws the request for registration of the proposed project activity prior to date that the secretariat publishes the request for registration on the UNFCCC website (EB 54, Annex 29, paragraph 12).

The amount of the paid registration fee greater than USD 30,000 shall be reimbursed if the DOE withdraws the request for registration of the proposed project activity subsequent to the date that the secretariat publishes the request for registration on the UNFCCC website, or if the Executive Board declines to register the proposed project activity (EB 54, Annex 29, paragraph 13).

The Executive Board had also initially stated that, in the case of voluntarily withdrawal, the registration fee is entirely non-refundable:

The Board further clarified that in cases where project activities have been withdrawn voluntarily by the project participants prior to registration the registration fee is non-refundable and that in the case of resubmission a new registration fee will have to be paid (EB 31, paragraph 81).

However, it has since specified that the full registration fee will be reimbursed if a DOE (or a project participant via a DOE) asks that a request for registration be withdrawn prior to its publication:

In cases where a DOE, or a project participant via a DOE, requests that a request for registration be withdrawn prior to the publication of this request the full amount of the registration fee will be
reimbursed (EB 41, paragraph 67).

Resubmission for requests determined to be incomplete

A different registration fee may apply where a resubmission for a request for registration is involved:

Upon resubmission of a request for registration directly following a determination by the secretariat that the submission is incomplete, no registration fee must be paid unless the resubmission results in an increase in the expected average annual certified emission reductions for the proposed project activity over its crediting period. If the resubmission results in an increase in the expected average annual certified emission reductions, then the registration fee due shall be recalculated upon resubmission. The registration fee due upon resubmission shall be the difference between the recalculated registration fee and the registration fee previously paid. (EB 54, Annex 29, paragraph 29).

Exemption for least-developed countries

At its 3rd meeting, the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (COP/MOP) decided to exempt least developed countries from paying the registration fee and share of proceeds at issuance:

The Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol ...

Decides to abolish the payment of the registration fee and share of proceeds at issuance for clean development mechanism project activities hosted in least developed countries (2/CMP.3, paragraph 31).

In response to this decision, the Executive Board has clarified that:

No registration fee must be paid for proposed project activities hosted in least developed countries. The application of this exemption shall be based on the status of the country on the date of the publication of the request for issuance (EB 54, Annex 29, paragraph 10).

Related Topics

Administration Share of Proceeds

Share of Proceeds

Certified emission reductions (CERs)

Executive Board

Project participants

Crediting period (P)

Registration fee (SSC)

Registration fee (A/R)

Registration fee (SSC A/R)

Registration fee (PoA)