Joint Implementation A Parties and Buyers Perspective Alexandra Amerstorfer Austrian JI/CDM Programme Joint Implementation A Parties and Buyers Perspective UNFCC Technical Workshop on Joint Implementation Füllung weiß/ keine Füllung 14.11.2018

Importance of Joint Implementation Many Annex I countries have established or are planning to establish acquisition programmes for ERUs and CERs EU ETS and Linking directive gave a new impulse to the market, demand has increased from private sector Estimates exist for overall demand for project based credits, but difficult to split into JI and CDM demand Estimated supply 2.1 billion tonnes CERs and ERUs (88% CDM, 12% JI) until 2012 (Source: Point Carbon) European companies and carbon funds most active buyers of CERs. Governments most active buyers of ERUs 14.11.2018

Advantages of JI versus CDM JI host countries established markets for many European companies (higher additional economic benefit) ETS: Daughter companies in JI countries provide opportunity for emission reductions Track 1 less complicated than CDM, if requirements are met 14.11.2018

Disadvantages of JI versus CDM Double counting provision in Linking directive limits use of JI by EU countries in new EU members Some – not all – new MS have held up approval of JI projects Risk of eliminating JI in EU MS by establishing very restrictive double counting rules? 14.11.2018

How to compensate disadvantages of JI Simplify JI by using Track 1 – still uncertain course for most of the host countries Give as soon as possible certainty about Track 2 – not restrict investments to Track 1 countries! Establishment of Green Investment Schemes 14.11.2018

Disadvantages of Track 1 JI Track 1 versus Track 2 Advantages of Track 1 Higher Flexibility Lower Transactions costs Baseline standardisation (multi-project baselines,...) No Supervisory Committee "Risk" Disadvantages of Track 1 Different standards are applied to projects (depending on Host countries) How binding are LoAs of Host Countries? 14.11.2018

Disadvantages of Track 2 JI Track 1 versus Track 2 Advantages of Track 2 One single standard is applied to projects Higher international credibility of the JI-projects ERUs are not considered for the commitment period reserve What do to if host country "looses" eligibility criteria for Track 1? Disadvantages of Track 2 Uncertainty regarding Supervisory Committee Decisions (Accreditation of Independent Entities, Baseline and Monitoring Methodologies) Time consuming development (adaption) of Guidelines 14.11.2018

Expectations (1) Implementation of a fast and efficient procedure for JI-projects! Accreditation Accreditation procedures for IEs Acceptance of DOEs as IEs should be "easier" for them Provisional acceptance of DOEs as IEs: impact on projects? - regulations for transition "Early Mover" Projects Adaption of the PDD to the new JISC-PDD? Validation: Should be a difference if done by an accredited DOE or not Timeframe and costs 14.11.2018

Expectations (2) Baseline Setting Small Scale JI-Projects Ressources Sectoral baselines – simple procedures GIS as alternative? Ressources Costs/Fees PROVIDE as MUCH SECURITY and CERTAINTY on JI-PROCEDURES and REQUIREMENTS as FAST as POSSIBLE to the MARKET! 14.11.2018

Füllung weiß/ keine Füllung Alexandra Amerstorfer Phone: ++43/(0)1/31 6 31-240 a.amerstorfer@kommunalkredit.at www.ji-cdm-austria.at Füllung weiß/ keine Füllung 14.11.2018