Björn Zapfel UNFCCC Secretariat JI Sub-Programme Joint Implementation Track 2 UNFCCC Technical Workshop on Joint Implementation Bonn, Germany – 16 October 2007

Joint Implementation Track 2 JI Track 1/Track 2 Eligibility requirements (ERU issuance, transfer and acquisition) Party to the Kyoto Protocol Assigned amount calculated National registry in place for tracking assigned amount National system in place for estimating emissions/removals Submission of most recent required emissions inventory Accurate accounting of assigned amount and submission of information Participation requirements (e.g.) : Designated focal point National guidelines and procedures Track 2 procedure Verification procedure under JISC Track 1 procedure Verification procedure according to host Party rules

Joint Implementation Track 2 JI Supervisory Committee Joint Implementation Supervisory Committee Establishment of JISC:CMP 1 Basic role:Operationalization and supervision of JI Track 2 procedure * Resignation as JISC member as of 2 May 2007 ** Resignation as JISC alternate member as of 15 August 2007 MembersAlternate members Annex I (EIT) Mr. Oleg PluzhnikovMr. Evgeny Sokolov Ms. Daniela StoychevaMs. Astrida Celmina Mr. Vlad TruscaMr. Matej Gasperic Annex I (Non-EIT) Mr. Olle BjörkMr. Franzjosef Schafhausen Mr. Maurits Blanson HenkemansMr. Hiroki Kudo Mr. Georg Børsting (Vice-Chair)(Mr. Darren Goetze)** Non-Annex I Mr. Jaime BravoMr. Marcos Castro Rodriguez Ms. Fatou Gaye (Chair)Mr. Vincent Kasulu Seya Makonga (Mr. Shailendra Kumar Joshi)*Mr. Maosheng Duan Non-Annex I (AOSIS) Mr. Derrick OdersonMs. Yumiko Crisostomo

Joint Implementation Track 2 Mandates of the JISC CDM experience Similarities Differences No approval of methodologies No project registration No ERU issuance by the JISC No limitation of LULUCF projects to afforestation and reforestation Mandates of the JISC Legal basis: “Marrakesh Accords” (Decision 9/CMP.1 ) “Montreal decision” (Decision 10/CMP.1 ) “Nairobi decisions” (Decisions 2/CMP.2 & 3/CMP.2 ) Mandates: Rules of procedure Accreditation of independent entities Criteria for baseline setting and monitoring Provisions for small-scale projects JI project design document (PDD) form(s) Reviews Provisions for fees Management plan Reporting to the CMP

Joint Implementation Track 2 Status of work of the JISC 2006: operationalization of JI Track 2 procedure Launch of JI Track 2 procedure on 26 October : operation/supervision of JI Track 2 procedure

Joint Implementation Track 2 JI Track 2 project cycle Project development Preparation and publication of PDD by project participants/AIE

Joint Implementation Track 2 Baseline setting / monitoring Baseline setting and monitoring Basis: Criteria for baseline setting and monitoring in appendix B of JI guidelines Guidance agreed on by JISC:  Baseline: on project-specific basis and/or using multi-project emission factor  Project participants allowed, but not obliged, to use approved CDM baseline and monitoring methodologies  Additionality: various approaches possible Provisions for small-scale projects agreed on by JISC:  JI SSC definitions: like for CDM SSC project activities (non-A/R) – revised by CMP 2  Main difference to CDM approach: No limits on bundling

Joint Implementation Track 2 JI Track 2 project cycle (cont.) Project development Preparation and publication of PDD by project participants/AIE 30 days: stakeholders’ comments

Joint Implementation Track 2 Stakeholders’ comments (status) 84 PDDs published for stakeholders’ comments (8 open for comments) Host Parties: Bulgaria (7 PDDs) Estonia (4) Germany (1) Hungary (1) Latvia (1) Lithuania (6) Poland (4) Romania (2) Russian Federation (41) Slovakia (1) Ukraine (16) Technologies: Renewable energy (biomass, wind, hydro) Methane avoidance (gas distribution, landfills, coal mine) Destruction of nitrous oxide from chemical processes (nitric acid production) Energy efficiency (manufacturing industries, district heating) Fuel switch (manufacturing industries, transportation, power generation) Emission reductions : ~ 145,000,000 t CO 2equ

Joint Implementation Track 2 JI Track 2 project cycle (cont.) Project development Preparation and publication of PDD by project participants/AIE 30 days: stakeholders’ comments Participation requirements Project approval by host Party Fees (advance payment)

Joint Implementation Track 2 Participation requirements (status) Designated Focal Point National guidelines and procedures Austria Belarus* Belgium Bulgaria Canada Czech Republic Denmark European Community Finland France Germany Hungary Ireland Italy Japan Liechtenstein Designated Focal Point National guidelines and procedures Lithuania Luxembourg Netherlands New Zealand Poland Portugal Romania Russian Federation Slovenia Spain Sweden Switzerland Ukraine United Kingdom of Great Britain and Northern Ireland * The CMP, by its decision 10/CMP.2, adopted an amendment to Annex B to the Kyoto Protocol, adding Belarus to it.

Joint Implementation Track 2 JI Track 2 project cycle (cont.) Preparation and publication of Determination by AIE Possible review by JISC 45 days: decision on review request by Parties involved/ individual JISC members, supp. by 2 JISC members’/alternates’ appraisal (incl. expert inputs) Project development Preparation and publication of PDD by project participants/AIE 30 days: stakeholders’ comments Participation requirements Project approval by host Party Fees (advance payment)

Joint Implementation Track 2 Determinations (status) Determinations regarding PDDs First determination deemed final on 26 March 2007 (“Switch from wet-to-dry process at Podilsky Cement”): Host Party: Ukraine Emission reductions : ~ 3,000,000 t CO 2equ Second determination published on 11 September 2007 (“Rehabilitation of Dolna Arda Hydropower Cascade”): Host Party: Bulgaria Emission reductions : ~ 270,000 t CO 2equ

Joint Implementation Track 2 JI Track 2 project cycle (cont.) Preparation and publication of Determination by AIE Possible review by JISC Preparation and publication of monitoring report by project participants/AIE Preparation and publication of Determination by AIE Possible review by JISC 45 days: decision on review request by Parties involved/ individual JISC members, supp. by 2 JISC members’/alternates’ appraisal (incl. expert inputs) 15 days: decision on review request by Parties involved/ individual JISC members, supp. by 2 JISC members’/alternates’ appraisal Project developmentProject implementation Issuance of ERUs by host Party (conversion of AAUs/RMUs) Transfer of ERUs by host Party and acquisition of ERUs Carbon Market Preparation and publication of PDD by project participants/AIE 30 days: stakeholders’ comments Participation requirements Project approval by host Party Fees (advance payment) Fees Project approval by non-host Party (at the latest) Eligibility requirements

Joint Implementation Track 2 Further information