German Emissions Trading Authority

At the same time, planning, development and implementation under CDM cause substantial transaction costs in the form of staff time and expense, consulting fees and fees for project registration which can easily amount to tens of thousands to hundreds of thousands of euros. The complexity of the CDM regulations and approval process and the amount of CDM-specific transaction costs may represent barriers to project development.

For stakeholders involved in the CDM, there are various promotion and financing offers available in Germany. These are offered at the state and federal level, quasigovernmental and private sector level. The package includes information events and information documents, advice and support, and financing activities.

For financial support in the implementation of CDM activities there are specifically tailored financing mechanisms, including the acquisition programmes of the KfW (Reconstruction Loan Corporation) Carbon Fund.

Transaction costs under CDM
Source: UNEP „CDM Information and Guidebook“ 2011
Note I: There is an adaptation fee waiver for projects in LDCs
*Note II: The administration fee is 0.1 USD/CER up to 15,000 CERs/year and 0.2 USD/CER above 15,000 CERs/year. Projects below 15,000 CERs/year do not pay any fee. This fee will be calculated based on PDD at registration. The amount will be adapted to the perpormance at verification (a part of the registration fee will be remunerated in the case of underperformance; and additional fees must be paid in the case of over performance).
ActivityCost (large scale project, USD)Cost (small scale project, USD)Cost type

Planning phase

First feasibility study (PIN)5,000 – 30,0002,000 – 7,500Consulting or internal cost
PDD development15,000 – 100,00010,000 – 25,000Beratungs- oder interne Kosten
New methodology8,000 – 30,0006,500 – 10,000DOE cost
Validation8,000 – 30,0006,500 – 10,000DOE cost
Registration fee10,500 – 350,0000 – 24,500EB fee
Total planning46,500 540,00025,000 77,000

Building phase

Installation of facility/components

Variable according to project type

Supplier contracts
Installation of monitoring devices

Normally negligible

(compared to overall investment)

Supplier contracts
Total construction

Variable according to project type

Operational phase

UN adaptation fund fee2% of CERs2% of CERsEB fee
First verification5,000 – 30,0005,000 – 15,000DOE cost
Further verification5,000 – 25,000 5,000 – 10,000DOE cost
Administration fee

See Note II*

EB fee
Total operation

Variable, min. 2% of CERs plus 5,000 per year

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