Development and Prospects for JI UNFCCC Side Event November 30, 2005 Hiroshi YAMAGATA Ministry of Economy, Trade and Industry JAPAN

2 General - Prompt start and user friendly- Role and function of JISC and IE Baseline, Monitoring, and Additionality Small-scale Track 1 procedures Promising Projects For success

3 JISC: What is its Responsibilities Accreditation of IE Review of standards and procedures for AIE Review and revision of reporting guidelines and criteria for baseline and monitoring Elaboration of JI-PDD Review procedures for final determination Management plan

4 AIE Second Track All CDM-DOEs should be accredited automatically as IE under JI. First Track Independent validation/verification by either a domestic or UNFCCC accredited entity may be needed to support host countries to approve the project and to issue appropriate quantity of ERUs. But, Parties should provide appropriate guidance to avoid the unnecessary workload and transaction cost by the detailed investigation. Moreover, in the interest of cost savings and comparability, it is another option to apply the ISO's specification and guidelines (by ISO/TC207) for validation and verification.

5 Baseline and Monitoring Methodology general MA does not require the concept of “approved methodologies.” The methodologies approved by CDM should be fully utilized under Track 2 at a complete discretion of project participants. Better than nothing. New baseline and monitoring methodology should be determined by AIE, based on the national guidelines of the host countries and in accordance with MA. Standard baseline JI allows to establish a baseline by using “a multi-project emission factor”. For example, emission factors for replaced power generations by the grids is set as weighted average emissions of the generation mix for all the JI host countries. However, it should be left to project participants whether to use such emission factors.

6 Additionality Keeping “additionality” requirements may be OK CDM additionality tool The project should be considered as additional if the emission scenario is different from the baseline scenario. “A baseline shall be established: MA-CDM In a transparent and conservative manner regarding the choice of approaches, assumptions, methodologies, parameters, data sources, key factors and additionality, and taking into account uncertainty;” MA-JI In a transparent manner with regard to the choice of approaches, assumptions, methodologies, parameters, data sources and key factors;”

7 Small-scale JI Simplified methodologies for small-scale CDM projects should also be valid for JI. Should small-scale thresholds for JI projects be established, they should be consistent, e.g. 100K- ton/year, which will enable all types of projects to be treated equally. Type I Renewable Type II Energy efficiency Type III Others SSC thresholdMax output up to 15 MW Reduction of energy consumption up to15 GWh/yr Direct emission less than 15,000 t- CO2/yr max ER kt-CO2/yr12-9 kt-CO2/yr109 kt-CO2/yr CDM threshold and Max Emission Reduction of SSCs

8 Track 1 procedures COP/MOP, in its guidance regarding JI implementation, should expressly allow the Parties involved to establish Track 1 procedures by themselves.

9 Promising Projects Russia Capture of CH4 from gas distribution system Fuel Switching of Coal Power Plants New EU Member Countries Outside EU-ETS Wind Power Biomass CHP CMM

10 Factors for Success Application of CDM M&P and Documents All Rules, Procedures, and Documents should be SET UP until COP/MOP2 Clarify the responsibilities of JISC, Secretariat, Parties, IE, Project Participants, and Experts Good Communication Transparency and Accountability