| Carbon Credit Consultancy |
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| Typical CDM-specific Project Costs |
In addition to the costs that would be incurred by a project regardless of whether or not it was registered as a CDM project, certain specific costs are associated with the various stages of the CDM project cycle, as set out below: |
| Activity |
Cost(large-scale, US$) |
Cost(small-scale, US$) |
Type of Cost |
| Planning Phase |
| Initial feasibility study, i.e. PIN |
5,000 to 30,000 |
2,000 to 7,500 |
Consultancy fee or internal costs |
| Project Design Document (PDD) |
15,000 to 100,000 |
10,000 to 25,000 |
Consultancy fee or internal costs |
| New methodology (if required) |
20,000 to 100,000 |
20,000 to 50,000 |
Consultancy fee or internal costs |
| Validation |
8,000 to 30,000 |
6,500 to 10,000 |
DOE fee |
| Registration fee (advance on SOP-Admin) |
10,500 to 350,000* |
0 to 24,500** |
EB fee |
| Total CDM-specific costs – planning phase |
38,500 to 610,000 |
18,500 to 117,000 |
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| Construction Phase |
| Construction, plant, and equipment |
Variable, depending on project type |
Contractors fee |
| Installation of monitoring equipment |
Usually minimal relative to total plant & equipment cost |
Contractors fee |
| Total CDM-specific costs – construction phase |
Usually minimal relative to total plant & equipment cost |
- |
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| Operation Phase |
| Un Adaptation Fund fee |
2% of CERs |
2% of CERs |
EB fee |
| Initial verification (including system check) |
5,000 to 30,000 |
5,000 to 30,000 |
DOE fee |
| Ongoing verification (periodically) |
5,000 to 25,000 |
5,000 to 25,000 |
DOE fee |
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| Share of proceeds to cover administration expenses (SOP-Admin) |
The fee paid at registration is effectively an advance that will be
‘trued up’ against actual CERs issued over the crediting
period (if different to emission reductions projected at
registration). SOP-Admin is not capped. |
EB fee |
| Total CDM-specific costs – operations phase |
Variable – minimum 2% of CERs plus 5,000/year (if verification undertaken
annually) |
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*US$0.10/CER for the first 15,000 CERs per year and US$0.20/CER for any CERs above 15,000 CERs per year (max US$350,000). The minimum shown here has been calculated as 15,000 CERs/year over a single 7-year crediting period.
** As for large scale, unless total annual average emission reductions over the crediting period are below 15,000 tCO2-e, in which case no fee is payable. Maximum calculated as 25,000 CERs/year over 7-year crediting period.
Notes: In addition to the costs shown above, a number of governments may charge a fee for the approval of a CDM project.
While most of the costs listed above are one-off costs incurred during the planning phase of the project, the costs of ongoing verification and the SOP Admin fees are incurred whenever issuance of credits for a project is required.
It should be noted that the upper ends of the cost ranges, in particular for large-scale PDDs and new methodologies, represent a ‘worst case’ scenario where an extremely large, complex project is being developed. On the other hand, the upper end of the range for registration costs represents a project with annual emission reductions of 182,500 tCO2-e/year over a 10-year crediting period, which is not unusual and is far exceeded by some of the larger projects. Therefore, for large projects with emission reductions beyond this level, SOP-Admin fees will eventually exceed the up-front registration fee. |
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| The evaluated standards are: |
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