Special Focus

GOLD STANDARD SWITCHES TO SOP FEE STRUCTURE

The Gold Standard Foundation, the world's leading certifier of offset credits within the international and voluntary carbon markets, is launching a new fee structure that provides improved financial stability for the certification scheme as well as flexibility and reliability for project developers. From August 1, 2009, new projects applying for the Gold Standard will no longer be charged a cash fee per credit certified, but instead will deliver a Share of Proceeds in the form of actual credits to the Gold Standard Foundation. The fee structure mimics the financing mechanism used by the UNFCCC for the adaptation fund.

In response to the carbon market's demand for a growing Gold Standard pipeline of premium quality credits, the Gold Standard is replacing its fee-for-credit system with a Share of Proceeds (SoP) model, in partnership with Sindicatum Carbon Capital. The Gold Standard Foundation has to date been funded through sponsorships, grants and fees, however it requires stable, predictable funding in order to meet the market's demand. The SoP model ensures that the Gold Standard can grow in tune with market demand.

The SoP model will charge projects a percentage of their credits, rather than a given fee per credit, as under the fee structure employed to date. The Gold Standard will, under this SoP model, be entitled to 1.5% of CERs and 2% of VERs for CDM and VER certified to Gold Standard projects respectively.  Sindicatum has agreed to buy these credits, a guarantee that enables the Gold Standard to increase its outreach and services.

The Gold Standard Foundation retains its full independence and status as a non-profit NGO. The primary objective of the Gold Standard remains the issuance of premium quality carbon credits. This ensures that the highest level of scrutiny continues to be applied and that the brand value thus established maintains its excellent reputation.

For more detailed explanations, go to Gold Standard SoP Fee Structure: Q & As.