Long-term certified emission reduction (lCER)
Long-term certified emission reduction (lCER) is defined in 5/CMP.1, Annex, paragraph 1:
"Long-term CER" or "lCER" is a CER issued for an afforestation or reforestation project activity under the CDM which, subject to the provisions in section K below, expires at the end of the crediting period of the afforestation or reforestation project activity under the CDM for which it was issued (5/CMP.1, Annex, paragraph 1(h)).
lCERs therefore differ from temporary certified emission reductions (tCERs) in that lCERs expire at the end of the crediting period of the project, while tCERs expire at the end of the commitment period in which they were issued.
Project participants in afforestation and reforestation (A/R) may choose whether to receive tCERs or lCERs for emission reductions attributable to the project (EB 15, Annex 9). Where project participants choose to lCERs, a request must be made to have a number of lCERs issued equal to net GHG removals since the previous certification:
Where project participants have chosen to issue lCERs to address non-permanence, a request to the Executive Board has to be made for issuance of lCERs equal to the verified amount of net anthropogenic GHG removals by sinks achieved by the A/R CDM project activity under the CDM since the previous certification (CDM Glossary of Terms, Version 03).
Since the CDM modalities and procedures apply to A/R and small-scale A/R project activities except as otherwise provided in 5/CMP.1 and 6/CMP.1, references in those modalities to CERs should be read as references to tCERs and lCERs, as appropriate, when interpreted in the context of such projects:
For the purposes of this annex, in the CDM modalities and procedures, contained in the annex to decision 17/CP.7, where it reads CER, it should instead read tCER and/or lCER (5/CMP.1, Annex, paragraph 2).
Using lCERs to meet commitments
Annex I Parties may use lCERs to meet emission reduction targets under the Kyoto Protocol, but only in the commitment period in which the tCERs were issued:
A Party included in Annex I may use lCERs towards meeting its commitment for the commitment period for which they were issued (5/CMP.1, Annex, paragraph 45).
lCERs expire at the end of the crediting period in which they were issued and may not be carried over or transferred:
Each lCER shall expire at the end of the crediting period or, where a renewable crediting period is chosen in accordance with paragraph 23(a) above, at the end of the last crediting period of the project activity... An expired lCER may not be further transferred (5/CMP.1, Annex, paragraph 46).
tCERs may not be carried over to a subsequent commitment period (5/CMP.1, Annex, paragraph 45).
The expiry date of the lCER is recorded as part of the serial number:
The expiry date shall be included as an additional element in its serial number (5/CMP.1, Annex, paragraph 46).
When retired lCERs expire, they must be replaced by other Kyoto units:
An lCER that has been transferred to the retirement account of a Party included in Annex I shall be replaced before its expiry date. To this end, for each such lCER, the concerned Party shall transfer one AAU, CER, ERU or RMU to the lCER replacement account of the current commitment period (5/CMP.1, Annex, paragraph 48).
Unlike tCERs, expired lCERs cannot be replaced by other lCERs.
lCERs may also need to be replaced where the certification report from the designated operational entity (DOE) reveals that greenhouse gas removals have been reversed since the last certification report (that is, carbon stocks have been depleted), or where a certification report is not provided within the required 5-year timeframe:
Where the certification report of the DOE indicates a reversal of net anthropogenic greenhouse gas removals by sinks since the previous certification, an equivalent quantity of lCERs shall be replaced (5/CMP.1, Annex, paragraph 49).
Where the certification report has not been provided in accordance with paragraph 33 above, the lCERs issued for the project activity shall be replaced (5/CMP.1, Annex, paragraph 50).
National registries must contain a lCER replacement account for the purpose of replacing lCERs:
Each national registry shall include a lCER replacement account for each commitment period in order to cancel AAUs, CERs, lCERs, ERUs and/or RMUs in accordance with paragraphs 48-50 below for the purposes of:
- Replacing lCERs prior to their expiry date;
- Replacing lCERs where the certification report of the DOE indicates a reversal of net anthropogenic greenhouse gas removals by sinks since the previous certification;
- Replacing lCERs where the certification report has not been provided in accordance with paragraph 33 above (5/CMP.1, Annex, paragraph 47).
Total acquisitions of tCERs and lCERs by Annex I Parties must not exceed 1% of base year emissions, times five:
Each Party included in Annex I shall ensure that its net acquisitions of tCERs and lCERs do not exceed the limits established for that Party as set out in paragraph 14 of the annex to decision 16/CMP.1 (5/CMP.1, Annex, paragraph 51).
tCERs and lCERs must not be transferred to the cancellation accounts of Annex I Parties or the CDM registry:
tCERs and lCERs may not be transferred to cancellation accounts of Annex I Parties referred to in paragraph 21 (c) and (d) of the annex to decision 13/CMP.1 or, where excess CERs were issued, to the cancellation account of the CDM registry referred to in paragraph 3 (c) of appendix D to the annex to decision 17/CP.7 (5/CMP.1, Annex, paragraph 52).
However, any tCERs and lCERs that expire while in the Executive Board's pending account in the CDM registry or a holding account must be cancelled:
Expired tCErs and lCERs held in holding accounts of registries, or the pending account of the CDM Registry, shall be transferred to a cancellation account (5/CMP.1, Annex, paragraph 53).
The ITL must notify Parties of an upcoming obligation to replace tCERs or lCERs:
The transaction log shall, one month prior to the expiry of each tCER or lCER in a retirement or in a replacement account, notify the Party included in Annex I concerned that a replacement of the tCER or lCER has to occur in accordance with paragraphs 44 or 48 above (5/CMP.1, Annex, paragraph 55).
Where tCERs and lCERs are not replaced in accordance with the rules, the ITL will forward this information to the secretariat as part of the review of compliance for that Party under Articl 8 of the Kyoto Protocol:
Where a Party included in Annex I does not replace tCERs or lCERs in accordance with paragraphs 44, 48, 49 and 50 above, the transaction log shall forward a record of non-replacement to the secretariat, for consideration as part of the review process for the relevant Party, under Article 8, to the Executive Board and to the Party concerned. The Executive Board shall make this information publicly available and include it in its reports to the COP/MOP (5/CMP.1, Annex, paragraph 56).