Eligibility to use tCERs and lCERs

Separate eligibility requirements apply to Parties seeking to use certified emission reductions (CERs) to meet their quantified emission limitation and reduction commitments

These requirements apply to forestry projects and references to CERs below should be read as references to temporary certified emissions CERs (tCERs) and long-term certified emission reductions (lCERs):

All provisions of section F of the CDM modalities and procedures, contained in the annex to decision 17/CP.7, shall apply mutatis mutandis to afforestation and reforestation project activities under the CDM (5/CMP.1, Annex, paragraph 7).

The requirements are set out in 3/CMP.1, Annex, paragraph 31:

Subject to the provisions of paragraph 32 below, a Party included in Annex I with a commitment inscribed in Annex B is eligible to use CERs, issued in accordance with the relevant provisions, to contribute to compliance with part of its commitment under Article 3, paragraph 1, if it is in compliance with the following eligibility requirements:
  1. It is a Party to the Kyoto Protocol;
  2. Its assigned amount pursuant to Article 3, paragraphs 7 and 8, has been calculated and recorded in accordance with decision 13/CMP.1;
  3. It has in place a national system for the estimation of anthropogenic emissions by sources and anthropogenic removals by sinks of all greenhouse gases not controlled by the Montreal Protocol, in accordance with Article 5, paragraph 1, and the requirements in the guidelines decided thereunder;
  4. It has in place a national registry in accordance with Article 7, paragraph 4, and the requirements in the guidelines decided thereunder;
  5. It has submitted annually the most recent required inventory, in accordance with Article 5, paragraph 2, and Article 7, paragraph 1, and the requirements in the guidelines decided thereunder, including the national inventory report and the common reporting format. For the first commitment period, the quality assessment needed for the purpose of determining eligibility to use the mechanisms shall be limited to the parts of the inventory pertaining to emissions of greenhouse gases from sources/sector categories from Annex A to the Kyoto Protocol and the submission of the annual inventory on sinks;
  6. It submits the supplementary information on assigned amount in accordance with Article 7, paragraph 1, and the requirements in the guidelines decided thereunder and makes any additions to, and subtractions from, assigned amount pursuant to Article 3, paragraphs 7 and 8, including for the activities under Article 3, paragraphs 3 and 4, in accordance with Article 7, paragraph 4, and the requirements in the guidelines decided thereunder (3/CMP.1, Annex, paragraph 31).

An Annex I Party will be considered to have met the requirements in paragraph 31 above when 16 months have elapsed since the submission of its national inventory report, with no objections raised to the contents of the report:

A Party included in Annex I with a commitment inscribed in Annex B shall be considered:
  1. To meet the eligibility requirements referred to in paragraph 31 above after 16 months have elapsed since the submission of its report to facilitate the calculation of its assigned amount pursuant to Article 3, paragraphs 7 and 8, and to demonstrate its capacity to account for its emissions and assigned amount, in accordance with the modalities adopted for the accounting of assigned amount under Article 7, paragraph 4, unless the enforcement branch of the Compliance Committee finds in accordance with decision 24/CP.7 that the Party does not meet these requirements, or, at an earlier date, if the enforcement branch of the Compliance Committee has decided that it is not proceeding with any questions of implementation relating to these requirements indicated in reports of the expert review teams under Article 8 of the Kyoto Protocol, and has transmitted this information to the secretariat (3/CMP.1, Annex, paragraph 32(a)).

An Annex I Party will continue to be eligible to use CERs towards its emissions target unless the enforcement branch of the Compliance Committee decides to suspend its eligibility:

A Party included in Annex I with a commitment inscribed in Annex B shall be considered: ...
  1. To continue to meet the eligibility requirements referred to in paragraph 31 above unless and until the enforcement branch of the Compliance Committee decides that the Party does not meet one or more of the eligibility requirements, has suspended the Party's eligibility, and has transmitted this information to the secretariat (3/CMP.1, Annex, paragraph 32(b)).

3/CMP.1, paragraph 33 provides that private and/or public entities authorised by a Party to participate in a CDM project activity will only be able to receive CERs from that project activity if the authorising Party meets all these eligibility requirements at the time of providing the authorisation:

Private and/or public entities may only transfer and acquire CERs if the authorizing Party is eligible to do so at that time (3/CMP.1, paragraph 33).

In addition to these general eligibility requirements, the Conference of the Parties (COP) has decided that the total number of tCERs and lCERs that can be used by Parties towards their quantified emission reduction and limitation commitments is one percent of base year emissions, times five:

The Conference of the Parties, ...

  1. Decides:
    1. That for the first commitment period, the total of additions to a Party's assigned amount resulting from eligible land use, land-use change and forestry project activities under the clean development mechanism shall not exceed one per cent of base year emissions of that Party, times five (17/CP.7, paragraph 7).

Related Topics

Temporary certified emission reductions (tCERs)

Long-term certified emission reductions (lCERs)

Quantified emission limitation and reduction commitments

Eligibility to use CERs

Participation Requirements - Annex I Party (SSC)

Participation Requirements - Annex I Party (A/R)

Participation Requirements - Annex I Party (SSC A/R)