1. Joint Implementation in the Czech Republic - building on our own experience Climate Change Department Tomas Chmelik Pavel Zamyslicky Climate Change Department Ministry of the Environment of the Czech Republic Vršovická 65 Praha 10, 100 10 Phone: +420 267 122 328 Fax: +420 267 126 328 E-mail: Tomas_Chmelik@env.cz Pavel_Zamyslicky@env.cz

2. Contents of the Presentation  Overview of JI projects  JI approval and criteria  Planned activities  Domestic requirements for Track I  Linking directive  Future of JI?

3. JI projects registered so far  In total 88 projects registered (PIN)  PCF cooperation – agreement with Czech Environmental Agency on delivery of total minimal cumulated amount of 500.000 tons of CO 2 equivalent for 2002-2012 Portfolio of projects (16 small hydro, 2 centralized heating)  BTG portfolio – ERUPT tender (15 biomass boilers)  Rest of projects in various stages of implementation

4. JI projects registered by MoE

5. Approval process in the Czech Republic 1.Registration of the project by MoE – PIN (LoE) 2.Registration to State Environmental Fund (SEF) – programme 2.8 (assessment) 3.Discussion in working group of MoE (suggestion for approval or refusal) 4.Ministerial approval (LoA)

6. Criteria  Defined relatively generally Priority areas (renewables, energy savings, transport…) Non-priority areas also possible Assessment takes into account environmental and economic issues Case-by-case basis  Room for improvement here…

7. Track I eligibility criteria  Moving towards…but not treated as an absolute priority at the moment (other issues…such as EU ETS)  Registries - ? Has anybody moved significantly further here?  Inventories – implementation of NIS started – some issues problematic (not enough experts)  Others should not be a major problem

8. Domestic requirements for Track I  Learning from problems in JI track 2  Standardization to a maximum extent possible  Validation and verification done by accredited local bodies  Additionality issues? To be considered  Simplification of procedures as much as possible  Pooling of projects needed  Potential?

9. Linking directive  Big problem for new member states of the EU (accession countries)  Further limits potential of JI  Reserve in NAP for indirect linking? What size? Will be approved (political risk)?  Is there a room for JI in linked regime at all?  Additionality – does it make sense for EU member state?

10. Suggestions for JI SC  Avoid CDM-like approach to JI  JI host countries – developed countries, elaboration of projects in extreme detail not necessary  Use maximum experience from CDM – apply baselines, procedures as much and as simply as possible – building the whole issue from scratch = whole process is delayed  Czech Republic will consider to stop JI activities until JI Track I eligibility is achieved or replace JI by GIS completely  Avoid political concerns (JI being competition to CDM – both mechanisms can live together without conflicts)

11. How to move forward?  What is the difference between Track I and IET (Article 17 trading in the form of Green Investment Scheme – GIS)?  JI development so far – excellent example of extreme inefficiency!  Perfect is the enemy of good!  CZ plans to combine (or replace) JI and GIS (green AAU trading) Simplified procedures, pooling of projects, additionality treated when desired, based on agreement between buyer and seller  Lets be flexible! Not overruled by rules!

12. Thank you for your attention !