1. 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, February, 2007

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

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

4. 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

5. 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

6. 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

7. 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

8. 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)

9. Thank you