1. Canada’s CDM & JI Office First UNFCCC Workshop on the Implementation of Article 6 Projects Under the Kyoto Protocol May 26 - 27, 2004 Moscow, Russia Canadian Climate Change Institutions

2. 2 Overview JI eligibility requirements Canadian inventory Status of the Canadian registry Status of the Canadian national system Canadian Perspectives on JI

3. 3 Joint Implementation (JI) Projects implemented by Annex I Parties with targets under Annex B Emission reductions and enhancement of sinks must be additional Approval by Parties involved Projects can start in 2000 – earn credits as of 2008 Marrakesh Accords established a two-track JI system Entities and Parties can voluntarily opt for Track II JI

4. 4 Eligibility to participate in JI Track I Parties involved in JI Track I must: Be a Party to the Kyoto Protocol Have established an inventory of assigned amounts units Have national system in place to estimate GHG emissions and sinks, and provide annual updates Have a national registry Submit supplemental information on changes to total assigned amount units Submit inventory and National Communication for Expert Team Review

5. 5 JI Track II Parties not meeting all requirements can still participate in JI under Track II but must still: –Be a Party to the Kyoto Protocol –Have established initial assigned amount –Have a national registry Parties can voluntarily opt for Track II Projects subject to third party verification (AIE) Role of JI Supervisory Committee (A6SC)

6. 6 National Inventory: International Submissions to UNFCCC Annual inventory submissions since entry into force of the UNFCCC convention Canada has generally met reporting requirements –Currently upgrading to meet UNFCCC and IPCC’s Good Practice Guidance standards –Moving to Tier 2 methods for key inventory categories –Preparing for reporting of Kyoto sinks

7. 7 Canadian Inventory: Mandatory Greenhouse Gas Reporting Mandatory facility level reporting National coverage Phase I reporting threshold at 100KT for CO2 eq First submissions due June 1, 2005 Environment Canada intends to publish the GHG emissions data by facility Scope, parameters of system likely enhanced in subsequent phases Will complement but not replace top-down approach used for UNFCCC submissions

8. 8 Status of Canadian Registry Currently assessing technical options Will be in place by January 1, 2006 Synergies with National Inventory System Possibility of using an “off-the-shelf” solution Registry administrator to be designated

9. 9 Canadian Perspectives on JI Canada’s CDM and JI Office acts as focal point; responsible for approving JI and CDM projects Developing guidelines with Interdepartmental Steering Committee Guidelines will: –Provide steps and procedures –Ensure synergies with other domestic initiatives –Will evolve over time

10. 10 Status of Canadian Mechanisms Eligibility On track for meeting national inventory system requirements JI approval procedures being elaborated Registry options being examined Canadian companies active in the JI market

11. 11 For more information... Canada’s CDM & JI Office Climate Change and Energy Division (ESC) Foreign Affairs Canada 111 Sussex Drive City Hall, 2nd Floor Ottawa, ON K1N 1J1 Tel: (613) 944-3039 Fax: (613) 944-0064 E-mail: cdm.ji@dfait-maeci.gc.ca Web: www.dfait-maeci.gc.ca/cdm-ji/