What is the MDG Carbon Facility’s Cost Recovery Fee?
As part of a development organization, the MDG Carbon Facility does not intend to generate profits. However, to recover direct costs for technical assistance, UNDP will apply a Cost Recovery Fee. The Cost Recovery Fee is a standardized, flat fee that is applied to all projects irrespective of their particular characteristics. UNDP appreciates that project proponents may be operating in a cash-constrained environment, particularly at the outset of project development. For this reason, Fortis will make advance payments from the project’s carbon credits proceeds, which will cover the Cost Recovery Fee. This means that project proponents are not required to make any Cost Recovery Fee payments until they have been issued carbon credits.
As part of a development organization, the MDG Carbon Facility does not intend to generate profits. However, to recover direct costs for technical assistance, UNDP will apply a Cost Recovery Fee. The Cost Recovery Fee is a standardized, flat fee that is applied to all projects irrespective of their particular characteristics.
