Issuance process
The process for issuance is as follows:
- A request for issuance is lodged with the Executive Board;
- The Registration and Issuance Team (RIT) performs an appraisal of the request for issuance;
- CERs are issued into the pending account of the Executive Board; and
- The focal point is notified that certified emission reductions (CERs) have been issued in respect of the project activity.
Request for issuance of CERs
The certification report, which is prepared and lodged by the designated operational entity (DOE) following certification, also constitutes a request for issuance:
The certification report shall constitute a request for issuance to the Executive Board of CERs equal to the verified amount of reductions of anthropogenic emissions by sources of greenhouse gases (3/CMP.1, Annex, paragraph 64).
The Executive Board has confirmed that a request for issuance may relate to a partial distribution of the CERs, temporary CERs (tCERs) and long-term CERs (lCERs) issued in a single transaction (EB 21, paragraph 70).
The Executive Board has clarified that DOEs and project participants are responsible for ensuring that all information relevant to support each request for issuance is made available in a transparent and timely manner (EB 27, paragraph 65).
Appraisal of a request for issuance
In considering requests for issuance, the Executive Board is assisted by an RIT, which prepares appraisals of requests for issuance submitted by DOEs to assess whether the verification and certification requirements are met and/or appropriately dealt with by DOEs (EB 29, Annex 14, paragraph 5(a)).
When a request for issuance is made, the secretariat identifies an RIT team. Any member that has a conflict of interest in relation to the assignment must notify the secretariat:
With the announcement of a request for issuance, as defined in the procedure "Procedures relating to verification report and certification report/request for issuance of CERs"5, the member will be informed and shall have a maximum of 1 day to indicate whether he/she has or not a conflict of interest which should be described. If a conflict of interest situation exists another person shall be assigned (EB 29, Annex 14, paragraph 28).
The RIT prepares an appraisal of the request for issuance, in accordance with the procedure set out in EB 29, Annex 14:
The appraisal shall indicate whether verification and certification requirements have been met and/or appropriately dealt with by the DOE and provide reasons in case these conditions are not fulfilled. The appraisal shall also cover whether additional guidance/clarification/revisions could avoid re-occurrence of the issues identified. The appraisal should assess in particular the application of both the monitoring methodology and the monitoring plan (EB 29, Annex 14, paragraph 29).
The appraisal must be submitted using the form CDM-ISSappr, within the relevant time period:
The member shall prepare an appraisal using the form "Appraisal of issuance requests (F-CDM-ISSappr)" and submit it to the secretariat within 6 calendar days through a dedicated interface on the UNFCCC CDM website. (EB 29, Annex 14, paragraph 30).
The secretariat will prepare a summary note of the appraisal and forward it to the Executive Board for consideration:
The secretariat shall prepare, on the basis of the member's appraisal, a summary note of the request for issuance and forward this, together with the member's appraisal, to the Board within 3 calendar days of receiving the member's appraisal (EB 29, Annex 14, paragraph 32).
Process for issuance
Issuance of CERs is considered final 15 days after the date of receipt of the request for issuance unless a review of the proposed issuance is requested:
The issuance shall be considered final 15 days after the date of receipt of the request for issuance, unless a Party involved in the project activity or at least three members of the Executive Board request a review of the proposed issuance of CERs (3/CMP.1, Annex, paragraph 65).
However, CERs will not be issued until the Administration Share of Proceeds (otherwise known as the issuance fee) has been paid (EB 21, Annex 26, paragraph 4). At this time, the Adaptation Share of Proceeds will also be deducted.
Once issuance of CERs has been finalised, the Executive Board will instruct the CDM registry administrator to issue CERs for the project activity :
Upon being instructed by the Executive Board to issue CERs for a CDM project activity, the CDM registry administrator, working under the authority of the Executive Board, shall, promptly, issue the specified quantity of CERs into the pending account of the Executive Board in the CDM registry, in accordance with appendix D below (3/CMP.1, Annex, paragraph 66).
Notification of issuance
The RIT has stated in informal communications that the focal point will be sent an email message at the time that CERs are issued into the pending account of the Executive Board.
Once CERs have been issued, the rules for forwarding of CERs govern the process of transferring CERs from the pending account to accounts held by the Parties and project participants.