1st Sustainable Development Mechanism

Bonn, 24 March 2012

Future of JI– Business Perspectives

Hanna-Mari AhonenIETA

Business needs clarity• JI is important model for new market mechanisms (host country cap, country-

driven)• Currently, no carbon market incentive to reduce emissions outside EU ETS!• To incentivise emission reductions in non-ETS sector & JI alive

– provide clarity on JI, asap!

Key issues to clarify immediately:• Incentives to early (immediate) action: otherwise, risk losing momentum• Timeline of re-operationalisation of JI: years of uncertainty undermine

investments• Transitional procedures between now and guideline revision: decisions

needed in Qatar• Host country eligibility: Kyoto CP2 ratifiers vs. non-ratifiers• Relationship with alternative offset schemes: Article 24a etc.

Key characteristics of revised guidelines:• Predictability & stability• Transparency & efficiency• Continuity & incentives for early and long-term action