Joint Implementation (JI)

  JI represents the project-based mechanism referred to in Article 6 of the Kyoto Protocol. JI stimulates investment in emission reduction projects, while giving industrialized countries, and economies in transition, some flexibility in how they meet their emission reduction or limitation targets. The subsequent emission reductions generated by the projects are called emission reduction units (ERUs). These units are traded in the carbon markets and can be used by a country to count toward its commitments under the Protocol.

  All Parties involved in the JI mechanism must meet a series of eligibility requirements defined by the Marrakesh Accords. A Party involved in a JI project shall inform the secretariat of its:

• Designated focal point for approving JI projects; and
• National guidelines and procedures for approving JI projects.

A Party may authorise legal entities to participate in JI projects. Authorised legal entities may only transfer and/or acquire ERUs if the authorising Party is eligible to do so. You can get more information on JI here.

  The eligibility requirements concern only the issuance, transfer and acquisition of ERUs. JI projects can be developed and implemented before the eligibility requirements are fully met. In order to be able to issue, transfer and/or acquire ERUs, three eligibility requirements have to be fulfilled by Annex I Parties:

• It is a Party to the Kyoto Protocol;
• Its assigned amount has been calculated and recorded appropriately;
• It has an appropriate national registry.

If only these minimum requirements are fulfilled, ERUs can be issued/ transferred for projects under the Track 2 procedure administered by the JISC. However, if the host Party additionally fulfils three further requirements, a project developer may choose to follow the Track 1 procedure. These criteria are:

• It has an appropriate national system for the estimation of GHG emissions by sources and removals by sinks;
• It has annually submitted the most recent inventory of greenhouse gas emissions and sinks;
• It appropriately submits supplementary information on the assigned amount (and makes appropriate adjustments to it).

A host Party meeting all the eligibility requirements may, at any time, choose to apply the Track 2 procedure. For more information please see go here:

  In Track 1, the host Party may verify emission reductions or enhancements of removals from a JI project as being additional according to its own rules. In Track 2 the project is implemented under the supervision of the Joint Implementation Supervisory Committee (JISC) in accordance with the verification procedure defined in the JI guidelines. Please go here for further details of the Track 2 procedures

  Projects starting as of 2000 may be eligible as JI projects if they meet the requirements of the JI guidelines. JI Programmes of Activities (PoAs) (adopted in October 2009) may include programme activities (JPAs) starting as of 2006, however, crediting can only start from 2008. More information can be accessed here.

  A crediting period for which reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks may be selected by the project participant, determined by an accredited independent entity (AIE) and approved by the Parties involved. ERUs shall only be issued for a crediting period starting after 1st January 2008. The end of the crediting period can be after 31st December 2012, subject to the approval by the host Party, and considering also any relevant agreement under the UNFCCC. However, the crediting period shall not extend beyond the operational lifetime of the project. Information on this can be access here.

  The secretariat has launched an RSS feed service for JI News and JI project related information. Through RSS, users can receive updates on specific information they need as it become available. To learn more, and to subscribe, please go to the JI RSS Page.

  RSS (also known as web feed, XML feed, syndicated content) stands for really simple syndication. When you subscribe to a feed, you receive notices of updated content on the website/webpage to which you have subscribed. RSS feeds can be used to deliver all types of digital content, such as text, pictures, video or audio. Feeds that deliver audio content (usually in MP3 format) are called podcasts. JI News sends out several RSS feeds. Future ones include a JI Audio file service, JI Guideline Reviews, JI project registrations.

  If you have forgotten your username and/or password, use the login/password recovery function..

  The JISC is responsible for supervision of projects under the Track 2 guidelines (see General inquires, Q4 for definition of Track 2). Some of this guidance includes maintaining and improving its rules and procedures, operationalizing the mechanism, accrediting independent entities; conducting reviews of project determinations and verifications. A full list of JISC responsibilities can be seen here.

  At the 2012 UN Climate Change Conference in Doha, Qatar, Parties took note of the recommendations by the JISC regarding the possible revision of the JI guidelines and agreed on a set of key attributes that shall characterize the future operation of JI. The CMP decision also invited Parties and observer organizations to submit further views and requested the secretariat to compile a report on possible changes drawing on submissions by Parties and observer organizations and the recommendations and experience by the JISC, for consideration by the Subsidiary Body for Implementation (SBI) at its thirty-eighth session in June 2013 [

The SBI is requested to prepare recommendations, including draft revised joint implementation guidelines, for consideration by Parties at the 2013 UN Climate Change Conference.

  JI does not prescribe certain methodologies. Instead, the developer will in preparing the project design document provide a detailed description of the project, its baseline, how it reduces emissions and how emission reductions will be monitored. Requirements set out in Appendix B of the JI guidelines and “Guidance on criteria for baseline setting and monitoring” must be met. This is known as a JI-specific approach. However, developers wishing to undertake project within the JI are also allowed to use any of the methodologies currently approved under the Clean Development Mechanism (CDM). A list of those methodologies can be found in the CDM Methodologies booklet. In order for this approach to be acceptable, the most recent valid version of the methodology must be used in its totality.

  The following three types of JI small scale projects are defined:

• Type I: renewable energy projects with a maximum output capacity of up to 15 megawatts (MW) (or an appropriate equivalent);
• Type II: energy efficiency improvement projects which reduce energy consumption, on the supply and/or demand side, by up to 60 gigawatts hours per year (or an appropriate equivalent);
• Type III: other projects that result in emission reductions of less than or equal to 60 kilotonnes of carbon dioxide equivalent annually.

Currently there is no definition for JI small scale LULUCF projects.

  A JI PoA is a coordinated action by a legal or governmental entity that implements a policy or stated goal and is comprised of one or more interrelated types of JI programme activities (JPAs) that have been or will be replicated. A JI PoA is aimed at achieving economies of scale and reaching wider groups of stakeholders than stand-alone projects and may be comprised of an unlimited number of JPAs.

  A JPA is a project under a JI PoA that results in a reduction of anthropogenic emissions by sources or enhancement of anthropogenic removals by sinks that are additional to any that would otherwise occur. JPAs are categorized by type. A type of JPA is defined by the technologies and/or measures to be used and includes a selection and a justification of the baseline setting and monitoring plan chosen for each technology and/or measure.

  The JISC guidance defines two approaches for the demonstration of additionality:

• JI Specific Approach. In case a JI specific approach is selected, additionality may be demonstrated by using one of the following options:
  • Provision of traceable and transparent information showing that the baseline was identified on the basis of conservative assumptions, that the project scenario is not part of the identified baseline scenario and that the project will lead to emission reductions or enhancements of net removals;
  • o Provision of traceable and transparent information that an AIE has already positively determined that a comparable project (to be) implemented under comparable circumstances (same GHG mitigation measure, same country, similar technology, similar scale) would result in an emission reduction or an enhancement of net removals that is additional to any that would otherwise occur and a justification why this determination is relevant for the project at hand;
  • o Application of the most recent version of the tool for the demonstration and assessment of additionality, approved by the CDM EB (grace period of 2 months from the moment of PDD publication) or any other method for proving additionality approved by CDM EB.
• Use of Approved CDM methodology. In case an approved CDM methodology is used, all explanations, descriptions and analyses with regard to additionality shall be provided in accordance with the selected methodology.

  A DFP is a national entity that approves projects. The Party which has nominated a DFP must notify the secretariat of the DFP, complete with contact details. The JISC has been tasked to work closely with the DFPs and the secretariat has established a forum for them in order to allow them to learn best practice from one another, while exchanging information.

  As the name would imply, these are independent auditors that assess whether a potential JI project meets all the eligibility requirements (determination) and whether the project has achieved greenhouse gas emission reductions (verification). They are accredited by the JISC to perform these functions according to their expertise. AIEs are only permitted to carry out determinations and verifications within the sector for which they have been accredited.

  JI is financed based on fees from projects. The level of the fees is determined according to an approved fee structure on a project-by-project basis and differ depending on whether a project is implemented under Track 1 or Track 2.

  This section summarizes the rules agreed at the United Nations climate change conference in Doha in December 2012 for the operation of the mechanisms in relation to the second commitment period under the Kyoto Protocol, which runs from 1 January 2013 to 31 December 2020 inclusive. These rules do not affect the operation of the mechanisms in relation to the first commitment period (e.g. the issuance, transfer, acquisition, and use of units valid for the first commitment period, including in the true-up period), which remains unchanged.

The CDM:

Non-Annex I Parties may continue to participate in existing CDM projects and may also participate in new CDM projects registered from 1 January 2013 onward.

Annex I Parties (including those without emission targets in the second commitment period) may participate in existing and new CDM projects and may receive CERs forwarded from the CDM registry to accounts in their national registry that are issued in respect of emission reductions and removals achieved by CDM projects in the second commitment period.

Please refer to the section below (‘emissions trading between Annex I Parties’) for rules governing transfers and acquisitions of CERs between Annex I Parties.

JI:

Annex I Parties with emission targets in the second commitment period may continue to host existing JI projects and may also host new JI projects registered from 1 January 2013 onward. The emission reductions and removals achieved by such projects in the second commitment period may be verified, and ERUs valid for the second commitment period may be converted from the host Party’s AAUs/RMUs for the second commitment period after these are issued. Parties agreed in Doha to consider expediting the issuance of AAUs for the second commitment period.

The rules regarding the commitment period reserve (as they apply to units valid for the second commitment period), which would normally apply to transfers of ERUs under track 1 JI, will not apply until the transferring Party calculates and records its assigned amount for the second commitment period.

Please refer to the section below (‘emissions trading between Annex I Parties’) for rules governing transfers and acquisitions of ERUs between Annex I Parties.

Emissions trading between Annex I Parties:

Annex I Parties with emission targets in the first and second commitment periods may transfer and acquire Kyoto units (e.g. AAUs, CERs, ERUs, RMUs) valid for the second commitment period as of 1 January 2013, unless and until they are found ineligible in accordance with established procedure (paragraph 3(b) of the annex to decision 11/CMP.1).

Annex I Parties with emission targets in the second commitment period but not in the first commitment period may transfer and acquire Kyoto units valid for the second commitment period only after they are found to be eligible in accordance with established procedure (paragraph 3(a) of the annex to decision 11/CMP.1). Parties agreed in Doha to consider expediting the establishment of their eligibility.

Annex I Parties with emission targets in the first commitment period but not in the second commitment period may not transfer or acquire Kyoto units valid for the second commitment period, although, as noted above, they may continue to receive CERs valid for the second commitment period forwarded from the CDM registry to accounts in their national registry.

The rules regarding the commitment period reserve (as they apply to units valid for the second commitment period) will not apply until the transferring Party calculates and records its assigned amount for the second commitment period.

  ERUs may be used by Annex I Parties for compliance with their emission targets for the first commitment period as long as they are “valid” for the first commitment period. ERUs are valid for the first commitment period if they are issued for emission reductions or removals taking place in the first commitment period, regardless of their actual date of issuance. The validity of an ERU can be determined by looking at its serial number.

  The Kyoto Protocol allows ERUs valid for the first commitment period, as with other types of units, to be traded into or out of accounts in a Party's national registry until the end of the 'true-up period' associated with that commitment period. This applies to all Annex I Parties with emission targets for the first commitment period, whether or not they accept emission targets for the second commitment period. This true-up period is formally defined as extending to 100 days after the date agreed by the Parties for completing the reviews of Annex I Parties' emission inventories for the 2012 calendar year. On this basis, the true-up period associated with the first commitment period is expected to extend until around mid-2015. ERUs valid for the first commitment period may not be traded after this date unless they are first 'carried over' to the second commitment period, at which point they become valid for the second commitment period.

Most non-government buyers and sellers of ERUs will, however, fall under the rules for domestic or regional emissions trading systems, such as the EU emissions trading system, which may impose other deadlines for using ERUs valid for the first commitment period. These market participants may wish to confirm the deadlines for surrendering ERUs against entity-level targets and/or exchanging ERUs valid for the first commitment period for units issued by such trading systems, as applicable, under the rules of such systems.

  Annex I Parties may decide to 'carry over' ERUs valid for the first commitment period into the second commitment period. Such carry-over transactions, as initiated by national registries, result in the serial numbers of the ERUs being updated.

Each Annex I Party is limited in the number of ERUs that it may carry over from the first commitment period. This limit is set at 2.5% of the Party's original allocation of assigned amount for the first commitment period. Each Party may determine which ERUs in its national registry are to be carried over. ERUs that have been converted from RMUs may not be carried over.