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 (EB 52, Annex 53). In other words, the registration fee is calculated based on the number of CERs that is expected to be generated by the project during its first year, as an average of annual expected CERs over the project's crediting period.
The COP/MOP decided at its first meeting that the Executive Board could propose lower fees for small-scale CDM project activities:
The Executive Board, in proposing the share of proceeds to cover administrative expenses and registration fees to recover any project related expenses, may consider proposing lower fees for small-scale CDM project activities (4/CMP.1, Annex II, paragraph 21).
The Executive Board has issued some qualifications to the above calculations:
The maximum registration fee payable is capped at USD 350,000 (EB 52, Annex 53, paragraph 6).
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 52, Annex 52, paragraph 7).
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 52, Annex 53, paragraph 10).
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 52, Annex 53, paragraph 11).
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).
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 52, Annex 53, paragraph 8).