PDF File - GEC

equal to the verified amount of GHG emissions reductions [CDM M&P, para. 64]. 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 3 members of the EB request a review (see subsequent paragraph)
of the proposed issuance of CERs [CDM M&P, para. 65]. When the request for issuance becomes final
or the EB decides to approve the issuance as the result of a review, the EB instructs the CDM registry
administrator to issue the specified quantity of CERs into the pending account of the EB in the CDM
registry [CDM M&P, para. 66].
(3) Review of the issuance of CERs [CDM M&P, para. 65] [Decision 4/CMP.1, Annex IV and EB29,
Annex 16]
The issuance of certified emission reductions (CERs) by the EB shall be considered final 15 days after
the date of receipt by the EB of the request for issuance, unless a Party involved in the project activity
or at least 3 members of the EB request a review of the proposed issuance of CERs. A request for
review shall provide reasons for the request for review and any supporting documentation. Such a
review shall be limited to issues of fraud, malfeasance or incompetence of the DOE and be conducted
as follows:
(a) Upon receipt of a request for such a review, the EB, at its next meeting, shall decide on its
course of action. If it decides that the request has merit, it shall perform a review and decide
whether the proposed issuance of CERs should be approved;
(b) The EB shall complete its review within 30 days following its decision to perform the review;
and
(c) The EB shall inform the project participants of the outcome of the review, and make public its
decision regarding the approval of the proposed issuance of CERs and the reasons for it.
If the EB decides not to approve a proposed issuance of CERs and if a DOE is found to be in the
situation of fraud, malfeasance or incompetence, the DOE shall reimburse the costs incurred as a
result of the review. This provision is subject to review as experience accrues.
1.4.7 Distribution of CERs
Upon issuance of CERs, the CDM registry administrator shall promptly forward the CERs to the registry
accounts of project participants involved, in accordance with their request, having deducted the
quantity of CERs corresponding to the share of proceeds (SOP) to cover administrative expenses for
the EB (SOP-Admin) and to assist in meeting costs of adaptation for developing countries vulnerable
to adverse impacts of climate change (SOP-Adaptation), respectively, to the appropriate accounts
in the CDM registry for the management of the share of proceeds. From the pending account, the
issued CERs are promptly forwarded to the following accounts within the CDM registry. Figure 1-9
shows how CERs are issued and distributed among different accounts within the CDM registry.
Accounts
Accounts for the management of the share of
proceeds
Accounts of Parties and project participants
involved
Amount of CERs to be forwarded
The share of proceeds to cover administrative
expenses for the EB (SOP-Admin): in accordance with
the amount of CERs, and to assist in meeting costs of
adaptation (SOP-Adaptation): 2 % of issued CERs
In accordance with the request by project
participants
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