Verification fee

A fee (the verification fee) is payable to the Joint Implementation Supervisory Committee (JISC) for the processing of verification reports.  This fee is in addition to the consultancy fees charged by the accredited independent entity (AIE) for conducting the verification.

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. 

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 (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)).

An upfront fee (the determination fee) equal to the estimated amount due for the verification fee for the first year of the project is payable when a determination report (relating to the eligibility of a project under the JI rules) is submitted to the secretariat.  However, no fee is payable in respect of small-scale projects or projects with an expected annual generation of 15,000 tonnesCO 2-e or less.

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

ERUs

Accredited independent entity

Track 2 verification

Joint Implementation Supervisory Committee