Determination fee

A fee (the determination fee) is payable by project participants when a determination report (relating to the eligibility of a project under the JI rules) is submitted to the secretariat.

The determination fee is an upfront payment of the estimated amount due for the verification fee for the first year of the project. In other words, the determination registration fee is calculated based on expected average annual generation of emission reduction units (ERUs).

The fee payable is USD 0.10 for the first 15,000 tonnes of carbon dioxide equivalent (CO2-e), and USD 0.20 per tonne thereafter.  However, no advance payment is required for projects with an expected annual generation of less than 15,000 tonnes CO2-e.  The maximum advance payment is USD 350,000.

If no verification report is subsequently submitted, any amount exceeding USD 30,000 will be reimbursed.

No fee is payable in relation to small-scale projects or projects with an expected annual generation of 15,000 tonnes CO2-e or less.

These rules are set out in the Provisions for the charging of fees to cover administrative costs relating to the activities of the Joint Implementation Supervisory Committee.  Version 1 of this document was adopted by the JISC at its fourth meeting (JISC 4, Annex 16) and approved by the COP/MOP at its second meeting (2/CMP.2, paragraph 16(b)).  The document was revised following the decision of the COP/MOP at its second meeting (3/CMP.2, paragraph 8) to incorporate preferential treatment for small-scale projects.  The revised version (Version 2), was adopted by the JISC at its eighth meeting (JISC 8, Annex 9) and is available here:

Fee for processing of verification reports:

  1. USD 0.10 per tonne of CO2 equivalent of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks for the first 15,000 tonnes of CO2 equivalent generated by the project in question in a given calendar year;
  2. USD 0.20 per tonne of CO2 equivalent of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks for any amount in excess of 15,000 tonnes of CO2 equivalent generated by the project in question in a given calendar year;
  3. A fee calculated in accordance with paragraph 16 (b) (i) and 16 (b) (ii) above and equal to the expected average annual generation over the crediting period of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks by the project shall be paid as an advance payment when a determination report regarding a project design document is submitted to the secretariat in accordance with paragraph 34 of the joint implementation guidelines; this advance payment shall be deducted from the first payments due in accordance with paragraph 16 (b) (i) and 16 (b) (ii) above; if no verification report is submitted, any advance payment above USD 30,000 shallbe reimbursed;
  4. No advance payment referred to in paragraph 16 (b) (iii) above shall be paid for projects with an expected average annual generation over the crediting period of reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks below 15,000 tonnes of CO2 equivalent; the maximum advance payment due shall be USD 350,000 (Provisions for the charging of fees to cover administrative costs relating to the activities of the Joint Implementation Supervisory Committee, JISC 8, Annex 9, paragraph 1(b)).

The COP/MOP requested that the JISC report annually on the revenue raised through the charging of fees for the processing of verification reports and the accreditation of independent entities, with a view to reviewing these arrangements if required:

The Conference of the Parties serving as the meeting of the Parties: ...

  1. Requests the Joint Implementation Supervisory Committee, with the assistance of the secretariat, to report annually to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol on the revenue received by the secretariat from the charging of fees to cover administrative costs relating to the activities of the Committee, with a view to reviewing these arrangements as necessary (2/CMP.2, paragraph 17).

Related topics

Track 2 determination

Project participant

Joint Implementation Supervisory Committee

Accredited independent entity