James Grabert Manager, Joint Implementation, UNFCCC secretariat Joint Implementation Overview & Status Kyoto Protocol and Carbon Market for Russian Enterprises Moscow, Russian Federation April 2007

JI state of playTrack 1 – Track 2 Track 1 The host Party verifies the emission reductions/enhancements of removals. The host Party issues and transfers the ERUs. Track 2 The emission reductions/enhancement of removals are verified following the verification procedure under the JISC. The host Party issues and transfers the ERUs.  A host Party eligible for Track 1, may at any time elect the Track 2 procedure.

JI state of playTrack 1 – Track 2 Participation requirements 1.Designated focal point 2.National guidelines and procedures Designated focal pointNational guidelines and procedures Austria  Bulgaria  Canada Czech Republic  Denmark  Finland  France Germany  Ireland  Italy Japan  Lithuania Luxembourg Netherlands  New Zealand Portugal Romania  Slovenia Spain Sweden  Switzerland Ukraine  United Kingdom 

Party to the Kyoto Protocol Assigned amount calculated National registry in place for tracking assigned amount National system in place for estimating emissions/removals Submission of most recent required emissions inventory Accurate accounting of assigned amount and submission of information Track 2 procedure Verification procedure under JISC Track 1 procedure Verification procedure according to host Party rules NOTE: Eligibility only relates to ERU issuance, transfer and acquisition (  No eligibility needed to develop and run JI projects) Requirements for issuing, transferring and/or acquiring ERUs JI state of playTrack 1 – Track 2

JI state of playTrack 2 project cycle Preparation and publication of PDD Preparation and publication of determination Project development Preparation and publication of monitoring report Preparation and publication of determination Project operation Issuance ERUs by host Party Transfer and acquisition of ERUs Issuance, transfer and acquisition

JI state of playTrack 2 project cycle PDD Preparation and publication of the PDD Prepared by project participants Submitted to the secretariat by an accredited independent entity (AIE) Entities accredited by the JISC Designated operational entities acting provisionally Published on the UNFCCC JI website Parties, stakeholders and UNFCCC accredited observers may submit comments during 30 days

JI after COP/MOP 2Track 2 project cycle Preparation and publication of the PDD Baseline setting and monitoring in accordance with appendix B of the JI guidelines Guidance agreed on by the JISC: Baseline: project-specific and/or multi-project emission factor CDM methodologies: project participants are allowed but not obliged, to use CDM approved baseline and monitoring methodologies Additionality: various approaches possible Provisions for small-scale projects agreed on by the JISC: Small-scale definitions: same as CDM definitions for emission reductions, revised by COP/MOP 2 Under JI, no limits to project bundling PDD

JI state of playTrack 2 project cycle Preparation and publication of the determination Determination regarding the PDD is prepared and submitted by an AIE Project approvals by the Parties involved Participation requirements are checked (DFP, national guidelines) Advance payment of the fee: Fee for processing of verification reports At this stage it is calculated based on the annual average of emission reductions/enhancements of removals First t CO 2 equ.  0.10 USD / t Over t CO 2 equ.  0.20 USD / t Max. fee: USD Fee over USD reimbursable

JI state of playTrack 2 project cycle Preparation and publication of the determination Determination is published on the UNFCCC JI website Parties involved and individual JISC members can request a review by the JISC Appraisal procedures assist JISC members: Two JISC members/alternates prepare an appraisal Two experts prepare an input to the appraisal A review is considered if a Party involved or three members of the JISC request a review Determination is final after 45 days if no review is requested

JI state of playTrack 2 project cycle Preparation and publication of the monitoring report Prepared by project participants in accordance with the monitoring plan determined by the AIE Submitted to the secretariat by an AIE Published on the UNFCCC JI website

JI state of playTrack 2 project cycle Preparation and publication of the determination Determination regarding emission reductions or enhancements of removals (verification) is prepared and submitted by an AIE Fee for processing of verification reports Published on the UNFCCC JI website Parties involved and individual JISC members can request a review by the JISC Appraisal by two JISC members/alternate A review is considered if a Party involved or three members of the JISC request a review Determination is final after 15 days if no review is requested

JI Track 2 Projects Current Status 50 PDDs Total emissions reductions ( ) = 94 million t CO 2 eq Distribution by project type Wind (11) Hydro (4) Biomass (4) Biofuel (2) CH 4 avoidance from gas network (7) CH 4 recovery from mines (2) Petroleum associated gas recovery (2) Landfill gas recovery (5) Energy efficiency improvement in industrial process (4) District heating (6) Other (4)

JI Track 2 Projects Russia 23 PDDs Total emissions reductions ( ) = 65 million t CO 2 eq

JI Track 2 Projects Closing Remarks What JI Track 2 offers Internationally standardised approach to implement JI projects ensuring a uniform quality standard Process safeguards environmental security by relying on independent project verification by uniformly accredited organisations and supervision by an international body, the JISC (international credibility) JI Track 2 procedure is fully operational (i.e. JISC has put in place all necessary regulations); Annex B Parties meeting Track 1 requirements at any time opt for Track 2 ERUs under Track 2 are exempted from Commitment Period Reserve restrictions Uncertainties Future of the Kyoto mechanisms after 2012 – discussions starting Availability of national guidelines – soon Competition with Track 1, Green Investment Scheme and Emissions Trading (157 “JI projects” in the pipeline)* - perhaps, but how much? * as of 14 March 2007 (source: UNEP Risø Center)

JI Track 2 ProjectsFurther information