1. Session 1
Guidelines for projects under Article 6 of the Kyoto Protocol
First UNFCCC workshop on implementation
of Article 6 projects under the Kyoto Protocol
Moscow
26-27 May 2004
UNFCCC secretariat

2. Overview What is JI? Why two tracks for JI?
What characterizes track 1 and track 2?
Public call to enhance timeliness and cost-effectiveness
Based on similarity of CDM-R to national registries and other applications
System requirements:
First design stage
Guide development work/options
Benchmark to test subsequent development
DES is the technical basis for transactions: issuance, transfers, cancellation

3. Convention (Art. 3.3, 4.2 (cooperate, jointly))
Cooperative mechanisms
Convention (Art. 3.3, 4.2 (cooperate, jointly))
AIJ under the pilot phase
Kyoto Protocol Art. 6, 12 and 17
3 Mechanisms
CDM JI ET
project based
System with GHG emission limitations

4. What is JI?
Emission reductions (ERU) are achieved by one Annex Party through projects in another such Party.
These project based investments shall provide emission reductions, or an enhancement of removals by sinks, that are additional to any that would otherwise occur.
Projects starting as of year 2000 are eligible as Article 6 projects if they meet requirements of guidelines. ERUs shall only be issued for crediting period after the beginning of 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);
Art. 6 LULUCF projects = Art. 3.3 and 3.4;
Legal entities to be authorized by Parties

5. Why two tracks for JI? Two “worlds” :
Party meets AIP participation requirements for emissions trading (Art. 17) -> use of national JI requirements (Track 1: “ET like”)
Party does not meet such requirements -> obligation to use “verification procedure” with international oversight (Track 2: “CDM like”)
A Party eligible to follow Track 1 may elect to use the verification procedure under of Track 2.
More detail on eligibility criteria in next session 4

6. What characterizes track 1 and track 2?
Project design (baseline/ monitoring plan)
National guidelines
Supervisory Committee(take into account work by CDM/EB)
Check project design against requirements
National guidelines (option to use Track 2)
Verification by AIE
Check performance of project
National guidelines (option to use track 2)
Verification by accredited AIE
Transfer
OK if Party meets requirements
In addition if track 2 option used: ERUs exempted from CPR limitations
Only if the Party is in compliance with eligibility requirements (para 21, a, b & d)
These ERUs are exempt from CPR limitations

7. Track 1 Key role for host Party
Have designated focal point for approving projects
Have determined national guidelines for:
Approving projects
Monitoring
Verification
Shall make directly or through secretariat information on projects publicly available
Meet participation requirements
No international guidelines regarding approving projects, baseline defintion, monitoring, verification etc.

8. Track 2 Key role for international oversight By A6SC:
Accredit independent enties (AIE)
Determine:
Baseline and monitoring methodologies
Verification
Request review of decision of AIE
By AIE:
Determination Art. 6 projects
Determination of emission reductions

9. Track 2 – Determination requirements
AIE to check whether project design:
Has been approved by Parties involved;
Emission additionality: would not have occurred in the absence of the project;
Baseline and monitoring plan in accordance with Art. 6 guidelines (Appendix B);
Analysis of environmental impacts.

10. Art. 6 project activity cyclePP
Ex0
A6SC&COP/MOP
AIE
Accreditation/ Designation
Design
AIE
Determination
A6SC* PP
Monitoring
PP=project participants; AIE= accredited independent entity
A6SC= article 6 supervisory committee
ERU= emission reduction unit
0 Any private or public body that has been accredited by A6SC and designated by COP/MOP
* An automatic step unless a review is requested within 60 days by one Party involved or three A6SC members
** An automatic step unless a review is requested within 15 days by one Party involved or three A6SC members
AIE
Determination
A6SC**
ERU

11. Track 2- How does accreditation work?Ex
Accreditation
List of accredited independent entities (AIE)
A6SC
AIEx
VERIFICATION PDD
VERIFICATION ERUs

12. Track 2 - Verification procedure
Criteria for baselines, monitoring and crediting lifetime (Appendix B)
Submits project design doc. PP
Automatic
within 45 days
Determination made public through UNFCCC secr.
Project implementation
AIEx
Rejects if not conform
with criteria PP
Unless review by A6SC is requested by a Party involved or 3 of A6SC members
PDD made public - comments within 30 days by Parties, stakeholders or UNFCCC accredited NGOs
Data URF
AIEx
Determination on verified ERUs made public through UNFCCC secr.
Unless review by A6SC is requested by a Party involved or 3 of A6SC members
AIEx= Accredited independent entity
Automatic
within 15 days
A6SC= Article 6 Supervisory Committee

13. Concluding remarks Framework
Work to define the detail of national guidelines
Work to define the detail of track 2 guidelines of procedures.
Experience of CDM -> also specific work
Meth LULUCF other than afforestation and reforestion
Accreditation
Issuance and transfer of ERU
Development of URF