Nov. 16 (Bloomberg) -- Emission-reduction project developers, who pay up-front fees when seeking carbon credits for greenhouse gas-cutting plants and renewable energy projects, want a portion of these fees to be refundable.
The United Nations Clean Development Mechanism, the world’s biggest carbon offsetting market, is overseen by a Bonn-based executive board. The price of credits has dropped 40 percent this year.
“We request the executive board to analyze the impact, with the aim of returning to project proponents a portion of, or all of, the registration fees paid for registered projects which ultimately were not implemented post-registration or resulted in significantly less emission reductions than estimated,” the Project Developer Forum Ltd., a London lobby group, said in a letter to delegates at UN-overseen climate talks that start later this month in Durban, South Africa.
Up-front fees can amount to more than 100,000 euros ($135,000) for the biggest CDM projects and returning unused cash to abandoned or scaled-back projects would free up funds for other initiatives, said Gareth Phillips, chairman of the group. “Project developers are being squeezed at the moment,” Singapore-based Phillips said today by phone.
To contact the reporter on this story: Mathew Carr in London at firstname.lastname@example.org
To contact the editor responsible for this story: Stephen Voss at email@example.com