Baseline setting and monitoring under JI compared to the CDM approach Alexandrina Platonova-Oquab Carbon Finance Unit, World Bank UNFCCC Technical Workshop on Joint Implementation Bonn, 13-14 February, 2007

Presentation outline Flexibilities in JI rules and methodology Overcome barriers for fully operational flexibility Further steps?

Flexibility in JISC procedure: JI Track 2 project cycle No submission & approval for new methodologies AIE responsible for determination No registration process

Flexibility in methodologies: baseline setting & monitoring for JI Track 2 Project-specific alternatives: New approach Use CDM methodologies Use relevant elements/combinations of CDM methodologies Sector-wide: Standard emission factors ERUPT, BASREC Similar emission intensity Small-scale projects: Simplified approach / new approach Use SSC CDM methodologies Use relevant elements/combinations of SSC CDM methodologies No eligibility size limit for bundles

Flexibility in the JI guidance: Additionality demonstration Demonstrate that the JI project is not part of the conservative baseline and reduces GHG emissions Use CDM Additionality Tools as appropriate Use the precedent of positive determination of a similar JI project

Some practical examples in WB CFU portfolio Revamping and modernization of steel plant: Complex technological changes & energy efficiency “100% JI” - Specific emission factor kgCO2e per unit of output Utilization of associated gas from oil field that would otherwise be flared: Recovery & utilization for electricity production “Elements of CDM” + Official sectoral methodology of methane emission calculation Landfill gas project: Landfill gas collection and flaring “CDM BM & MM” : ACM001 for baseline setting & monitoring

Make flexibility “operational”: eventual barrier of risk-averse behavior AIEs: Benchmarking on CDM experience Balance flexibility / stringency Tendency for conservativeness and low risk Project developers: Need to generate ERUs in a short term and at low risk Uncertainty of the JI Track 1 rules Uncertainty of the post-2012 regulation JISC reviews: First experience under JISC verification procedure Check of AIEs’ performance Potential impact: Creation of “limiting” precedents (e.g. for baseline setting) Less innovative JI process

Make flexibility fully “operational”: further steps? Confidence in AIE performance to check project quality: Capacity to speed-up learning process relying on CDM precedents, but More distinctive treatment of CDM and JI Move toward “top-down” approach: Generic “envelop” methodologies (e.g. sector-wide and/or based on specific technology set) Build-up on the CDM consolidation experience Move toward JI programs of activities: Capture the potential of small-scale energy efficiency Large source of short-term projects with quick implementation Cover sectors outside of EU ETS (district heating, transportation, demand side management)

Thank you www.carbonfinance.org aplatonova@worldbank.org