1. UNFCCC JI Workshop, Bonn
Implications of the EU ETS on JI
Manfred Stockmayer Managing Director Camco International

2. JI in CEE: Lots of questions…..
…. Which impacts does the EU Emissions Trading Scheme have?
…. How will the issue of double counting be interpreted and be dealt with?
…. What is the JI project potential in various sectors?
…. How easy is it to develop the project documents and get them approved?
…. How much time is left to develop JI projects?
…. What is the view of buyers on ERUs?

3. The Linking Directive – a bit of background
Links the project-based mechanisms (JI and CDM) to the EU Emissions Trading Scheme
National Allocation Plans shall determine the maximum percentage of CERs and ERUs to be used by installations
Application of criteria and guidelines from World Commission on Dams for hydro power projects
No CERs and ERUs from nuclear facilities and LULUCF activities
Avoidance of double counting (direct and indirect)

4. Direct double counting
Project is implemented in an installation covered by the EU ETS, for example:
Reduction of carbon intensity of energy sorces
Reduction of carbon intensity of production process
Requirement to qualify as JI project: Allowances must be cancelled
Effects:
Project leads to emission reduction in installation
EUAs are freed up OR ERUs are generated
=> projects will be implemented
Question, when a project is implemented. The closer to the end of the trading period, the more stupid decision to implement.

5. Indirect double counting I
Project implemented has an indirect effect on emissions in an installation covered by the EU ETS, for example:
Electricity from renewables (wind, small hydro, biomass, biogas,...)
CHP
Energy efficiency (electricity, district heating)
Requirement to qualify a JI project: equal number of EUAs is cancelled from the national registry of the Member State
Reduce allocation to electricity sector
Maybe reduce allocation to district heating sector
Create JI reserve

6. Indirect double counting II
What happens to my JI project?
JI reserve sufficiently large
=> Project can generate ERUs
First come – first serve?
A minute too late?
JI reserve NOT sufficiently large
=> No ERUs!
GIS?

7. Limitations on JI project potential

8. How are countries dealing with JI
Very diverse views by Member States on JI, ranging from
no interest in JI at all to
JI seen major opportunity to support investments
No full clarity on how to implement Linking Directive
JI reserves vary considerably
JI reserve already too tight in some countries
Green Investment Schemes (GIS) seen as promising alternative

9. What is the future of JI in CEE?
Race for JI reserves
Pressure on countries to increase reserves
Focus on technologies with no impact on EU ETS sector
Energy projects up to 20 MW
Methane components in projects
Biofuels
.....
Other instruments will be required to promote certain technologies (renewables, CHP, etc.)

10. Thank You Manfred Stockmayer Director Camco International

11. Camco International
Leading developer of carbon assets in JI and CDM projects
Camco works with industrial companies and utilities
Camco helps to maximise the volume and to facilitate placement
Main markets:
China
Russia
Africa
Central and Eastern Europe (CEE)
Listed on the London Stock Exchange
Current portfolio of more than 100 million tons of CO2