Cooperative Mechanisms UNFCCC secretariat 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 guidelinesSupervisory 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 Party to 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 for emission reducing projects for LULUCF projects

Annex 5 | Verifying compliance with the targets >=<>=< Emissions Secretariat compilation and accounting database Kyoto Protocol Compliance Committee Review, adjustment, compliance processes National systems Annex I Party systems Emissions inventories Reporting process National registries Assigned amount info Assigned amount