Cooperative MechanismsUNFCCC secretariat

http://unfccc.int/cdm

JI under UNFCCC

- An overview -

• COP 7 agreed on guidelines for Article 6 projects (decision 16/CP7)

to be adopted by COP/MOP 1

• Emission reductions (ERU) are achieved by one Annex Party

through projects in another such Party

• Projects provide emission reductions, or an enhancement of

removals by sinks, that are additional to any that would otherwise

occur

JI | The basics

• Projects starting as of year 2000 are eligible as Article 6 projects if

they meet requirements set in guidelines. ERUs can only be issued

for a crediting period beginning with the year 2008

• ERUs bankable to a max of 2.5% of assigned amount (pursuant to

Art. 3.7 & 3.8 of that Party (Art.7.4))

• LULUCF JI projects Art. 3.3 and 3.4

• Legal entities to be authorized by Parties

• Accredited independent entities (AIE) to undertake third party

verification

• Two tracks depending on eligibility status

JI | The basics

JI | Eligibility requirements (1)

Track 1 (full eligibility)

a. Party to the Kyoto Protocol

b. Assigned amount calculated

d. National registry in place for tracking assigned amount

Track 2 (partial eligibility)a. Party to the Kyoto Protocol

b. Assigned amount calculated

c. National system in place for estimating emissions/removals

d. National registry in place for tracking assigned amount

e. Submission of most recent required emissions inventory

f. Accurate accounting of assigned amount and submission of information

Track 1 (“ET like”) Track 2 (“CDM like”)

Project design (baseline/ monitoring plan)

National guidelines Supervisory Committee (taking into account work/experience of CDM/EB)

Check project design against requirements

National guidelines (with option to use Track 2)

Verification by AIE

Check performance of project

National guidelines (with option to use track 2)

Verification by AIE

Transfer • OK if Party meets requirements• Party eligible to use track 1 may elect to use the verification procedure under track 2. In this case, ERUs are exempted from commitment period reserve (CPR) limitations

• Only if the Party is in compliance with eligibility requirements (para 21, a, b & d)

• These ERUs are exempt from CPR limitations

JI | Two tracks – key features

• Key role for host Party– Have designated focal point for approving projects– Have determined national guidelines for:

• Approving projects• Monitoring • Verification

– Shall make information on projects publicly available in accordance with appendix B

– Meet participation requirements

• International guidelines regarding information to be made available (Appendix B to be reviewed by JISC and recommended to COP/MOP)

JI | Track 1 – Role of host Party

• Key roles for JISC and accredited independent entities (AIE)

• Role of JISC

Accredits independent enties

May request review of decision of AIE (see below)

• Role of AIEs:

Determine that Art. 6 projects conform with JI requirements,including that methodologies are appropriate

Determine amount of emission reductions/removals by sinks

JI | Track 2 – Role of international oversight

• COP/MOP 1: To adopt Article 6 guidelines (Marrakesh Accords) To establish the JISC and elect its members and alternates

• Possible further issues for consideration:

Further guidance by COP/MOP on the JISC work plan Possible guidance on other issues (for example regarding

methodological work, track 1 issues, resources for financing track 2 support)

• Watch for JI information at http: //unfccc.int/ Kyoto Mechanisms

JI | At COP/MOP 1

Annex 1 | Background information

• Kyoto Protocol implementation timeline

• Pre- commitment period milestones

• Verifying compliance with targets

Annex - 4 | Crediting for JI projects

• Conversion (“issuance”) of existing units of the host Partyto emission reduction units (ERUs) based on the project

• ERUs are transferred to investing Party/entity

• ERUs may be used by Annex B Parties for compliance

• ERUs differ from CDM credits, which are newly generated units

AAU

RMU

ERU

ERU

for emission reducing projects

for LULUCF projects

Annex 5 | Verifying compliance with the targets

>=<

Emissions 2008 - 2012

Secretariat compilation and

accountingdatabase

KyotoProtocol

ComplianceCommittee

Review, adjustment, compliance processes

National systems

Annex I Partysystems

Emissionsinventories

Reportingprocess

National registries

Assigned amount info

Assigned amount

2008 - 2012