Forwarding process

Forwarding takes place after issuance of tCERs or lCERs and pursuant to the following steps:

  • a forwarding request is submitted to the Executive Board in accordance with the statement of modalities of communication (MoC) for the project activity;
  • the tCERs or lCERs are forwarded by the CDM registry administrator to the account(s) specified in the forwarding request; and
  • if an account holder requests notification, the holder of an account into which tCERs or lCERs are forwarded will be notified of the receipt of CERs.

The rules relating to forwarding of CERs to large-scale non-forestry projects apply equally to forwarding of tCERs and lCERs to A/R projects:

The issuance [and forwarding] of tCERs or lCERs for afforestation and reforestation project activities under the CDM shall be subject to the provisions of paragraphs 65 and 66 of the CDM modalities and procedures, contained in the annex to decision 17/CP.7 (5/CMP.1, Annex, paragraph 37).

These rules apply to SSC A/R projects by reason of their application to A/R projects:

The modalities and procedures for afforestation and reforestation project activities under the CDM shall apply to small-scale afforestation and reforestation project activities under the CDM except for paragraphs 12-30 (6/CMP.1, Annex, paragraph 3).

Step 1: Forwarding request

A forwarding request, commonly known as a "request for distribution", is an instruction to the Executive Board which requests that tCERs or lCERs be transferred from the pending account to the holding account(s) of project participants or Parties.

Contents of a Forwarding Request

A forwarding request will consist of:

  • a completed forwarding request form (F_CDM_FORWCERS);
  • a code transmitted to participants at the point of issuance;
  • the type of units to be forwarded (i.e. lCERS or tCERs);
  • the name and numeric identifier of each account to which units are to be forwarded; and
  • the precise number of units to be forwarded to each account.

A forwarding request may specify allocation of units (tCERs or lCERs) to accounts in terms of percentages. The Executive Board has clarified that any tCER or lCER which remains undistributed to Project Participants, as a result of rounding the percentage shares contained in a forwarding request to the nearest whole unit, shall be forwarded to an account specified in the forwarding request or, where no such account is specified, to an account for the Adaptation Share of Proceeds (EB 20, paragraph 70).

Requests for partial distribution are also allowed:

The Board agreed that requests for the partial distribution of CERs, tCERs and lCERs issued in a single transaction shall be allowed. The Board further agreed that information on undistributed units from a project activity, aggregated at the Party-level, is to be included in the monthly reports provided by the CDM registry to DNAs of respective Parties involved (EB 21, paragraph 70).

Form of Forwarding Request

The form for requesting forwarding of tCERs or lCERs from the pending account into a holding account is not made available on the CDM website. The forwarding request form is sent to the Focal Point via e-mail, along with confidential information needed to fill out the form, once CtCERs or lCERs ERs have been issued into the pending account.

Submission of Forwarding Request

The forwarding request must be executed and submitted in accordance with the MoC which has been submitted to the Executive Board in respect of the project activity. For example, if the MoC provides that only the signature of the focal point is required for forwarding requests, then a forwarding request which is signed by the focal point will be sufficient.

Step 2: Forwarding of tCERs or lCERs

After issuance of CERs into the pending account in the CDM registry, the CDM registry administrator will forward CERs to the relevant accounts:

Upon such issuance, the CDM registry administrator shall promptly:

  1. Forward the quantity of CERs corresponding to the share of proceeds to cover administrative expenses and to assist in meeting costs of adaptation, in accordance with Article 12, paragraph 8, to the appropriate accounts in the CDM registry for holding and transferring such CERs; and
  2. Forward the remaining CERs to the registry accounts of project participants and Parties involved, in accordance with their request (3/CMP.1, Annex, paragraph 66) .

Paragraph (b) above provides that tCERs or lCERs may only be forwarded to the temporary/permanent holding accounts of project participants and Parties involved in the project activity. The Executive Board will not instruct the CDM registry administrator to forward tCERs or lCERs to accounts held by entities that are not project participants in the project activity.

tCERs or lCERs may be forwarded to holding accounts in the CDM registry of entities authorized by non-Annex I Parties, however, a letter of approval is required to transfer tCERs or lCERs from such a holding account to accounts in national registries of Annex-I Parties (EB 25, paragraph 108).

Provided that letters of approval from relevant Annex I Parties have been submitted to the Executive Board, the CDM registry administrator will forward, on the request of authorised representatives, tCERs and lCERs to accounts in national registries belonging to entities authorised by non-Annex I Parties to participate in the project activity (EB 20, paragraph 71).

Step 3: Notification of forwarded tCERs or lCERs

The practice of the CDM registry administrator is that once tCERs or lCERs have been forwarded from the Executive Board's pending account to a temporary holding account in the CDM registry, the primary representative of that account will receive notification by facsimile and post.  This notification will contain:

  • Confirmation of the number of tCERs or lCERs that have been transferred;
  • The transaction number and date of the transaction;
  • The project ID for which the tCERs or lCERs were issued; and
  • The serial range of the issued tCERs or lCERs.

The same notification may or may not be provided by national registry administrators upon receipt of tCERs or lCERs in the national registry accounts of project participants (having been forwarded from temporary holding accounts or the Executive Board's pending account).  Whether such notification is provided is at the discretion of each national registry administrator.

Related Topics

Focal point

Project participants

Modalities of communication

Holding account

Pending account

Executive Board

What is issuance? (SSC A/R)

Certified emission reductions (CERs)

Forwarding process (P)

Forwarding process (SSC)

Forwarding process (A/R)

Forwarding process (PoA)