Issuance process

At EB 54, the Executive Board adopted the Procedures for Requests of Issuance of CERs (Version 01) (EB 54, Annex 35) in accordance with decision 3/CMP.1, annex, paragraphs 19, 62-64 and 66 and decision 2/CMP.5, paragraph 37. The procedures outline:

• how a DOE is to submit a request for issuance of certified emission reductions (CERs);

• how the secretariat is to process a request for issuance;

• when a request for issuance will be published and received by the Executive Board for consideration; and

• how a request for issuance is considered.

Procedures for Submitting a Request for Issuance

The designated operational entity (DOE) shall submit the request for issuance of CERs only after it verifies the monitoring report and certifies the quantity CERs claimed in the monitoring report., which the DOE shall do so by following and meeting the requirements as outlined in the latest version of the "Clean Development Mechanism Validation and Verification Manual" and other CDM requirements which apply (EB 54, Annex 35, paragraph 5).

In conjunction with a request for issuance of CERs, the DOE must also electronically submit to the secretariat the required accompanying documentation, a list of which is provided in the latest applicable version of the completeness checklist for requests for issuance (which is published online by the secretariat on the UNFCCC CDM website) (EB 54, Annex 35, paragraph 6).

Procedures for Processing a Request for Issuance

The secretariat is responsible for processing requests for issuance of CERs submitted to it by DOEs.

The secretariat is to maintain a publicly available listing of all submitted requests for issuance, including a schedule setting out the expected dates of commencement in respect of the processing of each request.

Completeness check

Within 7 days of commencing the processing of a request for issuance, the secretariat is to conduct a completeness check to determine whether the request for issuance is complete and in accordance with the latest applicable version of the completeness checklist for requests for issuance (EB 54, Annex 35, paragraph 9).

Upon conclusion of the completeness check, the secretariat shall do the following:

• notify the project participant(s) (as identified in the Modalities of Communication form);

• notify the DOE of the result of the completeness check (such notification to provide underlying reasons for the result); and

• make the results of the completeness check publicly available by publication on the UNFCCC website (EB 54, Annex 35, paragraph 10).

Where the request for issuance does not meet the requirements of the completeness check, the DOE is allowed to submit revised documentation. Upon receipt of such revised documentation, the request for issuance is to be treated as a new submission of a request for issuance (EB 54, Annex 35, paragraph 10).

Information and reporting check

Where a request for issuance meets the requirements of the completeness check, within 23 calendar days, the secretariat will conduct an information and reporting check in accordance with the latest applicable version of the information and reporting checklist for requests for issuance (which is to be made publicly available by the secretariat on the UNFCCC website).

Upon conclusion of the information and reporting check, the secretariat shall do the following:

• notify the project participant(s) (as identified in the Modalities of Communication form);

• notify the DOE of the result of the completeness check (such notification to provide underlying reasons for the result); and

• make the results of the completeness check publicly available by publication on the UNFCCC website (EB 54, Annex 35, paragraph 112).

Where the request for issuance does not meet the requirements of the information and reporting check, the DOE is allowed to submit revised documentation. Upon receipt of such revised documentation, the request for issuance is to be treated as a new submission of a request for issuance (EB 54, Annex 35, paragraph 12).

Where a request for issuance meets the requirements of the information and reporting check, the secretariat is to publish the request for issuance on the UNFCCC website. At this time, the request for issuance is deemed to have been received by the Executive Board for consideration of the issuance. The 28 day period in which a request for review of the request for issuance can be made commences at this date (EB 54, Annex 35, paragraph 13-18).

Post-information and reporting check

Upon conclusion of the information and reporting check, the secretariat shall notify the project participant(s) (as identified in the Modalities of Communication form), the DOE(s) of the parties involved and the DOE which submitted the request:

(a)    that the secretariat has proposed the request for issuance;

(b)    that the request for issuance has been received by the Executive Board for consideration of the issuance; and

(c)    of the last date by which the Executive Board or a party involved in the CDM project activity may request a review of the request for issuance. (EB 54, Annex 35, paragraph 112)

This "last date" is prescribed in EB 54, Annex 35 as 28 days after the date of publication of the request for registration.

Review of a Request for Issuance

The procedures for requesting a review of a request for issuance are provided for in "Procedure for Review of Requests for Issuance of CERs" (EB 64, Annex 4).

A request for review of the request for issuance can be made within 28 days by a Party involved in a proposed CDM project activity or at least three Executive Board members. If a request is received within the time limit the secretariat shall:

(a)    Notify the project participants, as identified in the Modalities of Communication form, and the DOE that verified and certified the claimed CER that a party involved in a proposed CDM project activity or at least three Executive Board members have requested a review of the request for issuance;

(b)    Make publicly available an anonymous version of each request for review form;

(c)    Assign a team comprising two experts from the Registration and Issuance Team ("RIT Team") to participate in the assessment of the request for review. The secretariat shall appoint one of the assigned Team members to serve as the lead, who shall be responsible for all communications with the secretariat (EB 64, Annex 4, paragraph 7).

After notification of the request for review the Project Participants and the DOE have 28 calendar days in which to provide a response to the issues identified. For each issue raised in the request for review the Project Participants and the DOE shall either:

(a)    Respond by making any revisions to the monitoring report (MR) and attached spreadsheets, verification report (VR), and/or certification that they deem necessary to, inter alia, ensure that all facts are clearly stated and sufficiently verified; or

(b)    Respond in writing by addressing why no revisions to the MR, VR, and/or certification are necessary (EB 64, Annex 4, paragraph 7).

The Secretariat will then schedule the date for the commencement of the review of the request for issuance and inform the Project Participants and the DOE of this date: 

The commencement of the review shall be defined as the date on which the secretariat notifies the project participants and the DOE that the review has commenced (EB 64, Annex 4, paragraphs 7).

Both the secretariat and the RIT Team must then concurrently and independently make an assessment of the request for issuance, each following their own set of  parameters.

The Secretariat makes an assessment:

(a)    in the context of the reasons for the request for review as indicated in the request for review form and the CDM requirements; and

(b)    taking into account the responses of the projects participants and the DOE.

The RIT Team makes an assessment:

(a)    in accordance with the RIT Terms of Reference; and

(b)    taking into account the responses of the projects participants and the DOE.

The assessments are to be finalised no later than two weeks after the commencement of the review, and must propose a decision to either approve or reject the request for issuance. If the proposed decision is to reject the request for issuance, the assessment report must contain a proposed ruling detailing an explanation of the reasons and rationale (EB 64, Annex 4, paragraphs 12-19).

If both reports reach the same proposed decision. The proposed decision becomes the final decision of the Executive Board within 20 days. An Executive Board member may object to the proposed decision in writing, to the Chair of the Executive Board through the Secretariat before the expiration of the 20 day period. In such a case the matter is placed before the Executive Board in the next Executive Board meeting where a final decision is made.

If both reports reach different proposed decisions the Executive Board receives both reports and considers them both in the next Executive Board meeting, where a final decision is made. 

If the final decision is to approve the request for issuance then the EB will instruct the Secretariat to issue the CERs:

If a final decision approves request for issuance, the Executive Board shall instruct the CDM registry administrator to issue a specified quantity of CERS into the pending account of the Executive Board of the CDM registry, in accordance with decision 3/CMP.1, annex, paragraph 66 (EB 64, Annex 4, paragraph 25).

If the final decision is to reject the request for issuance then the Secretariat shall, within three weeks of the final decision, provide the Chair of the Executive Board with an information note, which shall contain a proposed final ruling incorporating the final decision and reasoning.

This proposed final ruling will become final after 10 days unless there is an objection from another member of the Executive Board. If an objection is received it shall again be put before the Board for a final decision (EB 64, Annex 4, paragraphs 27-32).

Related Topics

Registration and Issuance Team (EB-RIT)

Executive Board

Focal point

Project participants

Pending account

Certified emission reductions (CERs)

Certification report

Issuance process (P)

Issuance process (SSC)

Issuance process (A/R)

Issuance process (SSC A/R)