A fee, also known as the Administration Share of Proceeds, is charged upon issuance of CERs. The Administration Share of Proceeds is a charge of:
- USD 0.10 per CER issued for the first 15,000 tonnes of CO2 equivalent for which issuance is requested in a given calendar year;
- USD 0.20 per CER issued for any amount in excess of 15,000 tonnes of CO2 equivalent for which issuance is requested in a given calendar year (7/CMP.1, paragraph 37).
It is used to assist with the administrative expenses of the Executive Board and other bodies involved in the Protocol framework.
This replaces an earlier decision of the Executive Board which recommended that the Administration Share of Proceeds be set at USD 0.20 per CER issued (EB 21, Annex 26, paragraph 2).
The Executive Board has confirmed that issuance of CERs shall only occur once the Administration Share of Proceeds has been received in each year:
The Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol: ...
Decides ... that the issuance of certified emissions reductions ... shall be effected only when the share of proceeds to cover administrative expenses has been received (7/CMP.1, paragraph 37).
The registration fee is an upfront payment of the estimated amount of the issuance fee (Administration Share of Proceeds) for the first year of the project being the share of proceeds applied to 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 (DOE) (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 54, Annex 29, paragraph 5).
The Guidelines on the Registration Fee Schedule for Proposed Project Activities under the Clean Development Mechanism was adopted at EB 54, Annex 29 and revise EB 52, Annex 53.