www.unfccc.intUNFCCC secretariat

Session 1Guidelines for projects under Article 6 of the Kyoto Protocol

First UNFCCC workshop on implementationof Article 6 projects under the Kyoto Protocol

Moscow26-27 May 2004

Overview

What is JI?

Why two tracks for JI?

What characterizes track 1 and track 2?

Cooperative mechanisms

Kyoto Protocol Art. 6, 12 and 17

3 Mechanisms

CDM JI ET

project based System with GHG emission limitations

Convention(Art. 3.3, 4.2 (cooperate, jointly)) AIJ under the

pilot phase

What is JI?• Emission reductions (ERU) are achieved by one Annex

Party through projects in another such Party.

• These project based investments shall provide emission reductions, or an enhancement of removals by sinks, that are additional to any that would otherwise occur.

• Projects starting as of year 2000 are eligible as Article 6 projects if they meet requirements of guidelines. ERUs shall only be issued for crediting period after the beginning of year 2008.

• ERUs bankable to a max of 2.5% of assigned amount pursuant to art. 3.7 & 3.8 of that Party (art.7.4);

• Art. 6 LULUCF projects = Art. 3.3 and 3.4;

• Legal entities to be authorized by Parties

Why two tracks for JI?

• Two “worlds” :

Party meets AIP participation requirements for emissions trading (Art. 17) -> use of national JI requirements (Track 1: “ET like”)

Party does not meet such requirements -> obligation to use “verification procedure” with international oversight (Track 2: “CDM like”)

A Party eligible to follow Track 1 may elect to use the verification procedure under of Track 2.

More detail on eligibility criteria in next session 4

What characterizes track 1 and track 2?Track 1 Track 2

Project design (baseline/ monitoring plan)

National guidelines Supervisory Committee(take into account work by CDM/EB)

Check project design against requirements

National guidelines (option to use Track 2)

Verification by AIE

Check performance of project

National guidelines (option to use track 2)

Verification by accredited AIE

Transfer • OK if Party meets requirements

• In addition if track 2 option used: ERUs exempted from CPR limitations

• Only if the Party is in compliance with eligibility requirements (para 21, a, b & d)

• These ERUs are exempt from CPR limitations

Track 1• Key role for host Party

– Have designated focal point for approving projects– Have determined national guidelines for:

• Approving projects• Monitoring • Verification

– Shall make directly or through secretariat information on projects publicly available

– Meet participation requirements

• No international guidelines regarding approving projects, baseline defintion, monitoring, verification etc.

Track 2Key role for international oversight • By A6SC:

– Accredit independent enties (AIE)– Determine:

•Baseline and monitoring methodologies•Verification

– Request review of decision of AIE• By AIE:

– Determination Art. 6 projects– Determination of emission reductions

Track 2 – Determination requirements

AIE to check whether project design: – Has been approved by Parties involved;– Emission additionality: would not have

occurred in the absence of the project; – Baseline and monitoring plan in

accordance with Art. 6 guidelines (Appendix B);

– Analysis of environmental impacts.

Art. 6 project activity cycle

PP=project participants; AIE= accredited independent entityA6SC= article 6 supervisory committeeERU= emission reduction unit

0 Any private or public body that has been accredited by A6SC and designated by COP/MOP * An automatic step unless a review is requested within 60 days by one Party involved or three A6SC members** An automatic step unless a review is requested within 15 days by one Party involved or three A6SC members

Ex0

A6SC&COP/MOP

AIE

Accreditation/Designation

Determination

Monitoring

Determination

Design

A6SC*

A6SC**

ERU

AIE

PP

AIE

PP

Track 2- How does accreditation work?

Ex

A6SC

AIEx

Accreditation

VERIFICATION PDD

VERIFICATION ERUs

List of accredited independent entities (AIE)

Track 2 - Verification procedure

PPSubmits project design doc.

Rejects if not conform with criteria

AIEx

AIEx= Accredited independent entity

Criteria for baselines, monitoring and crediting lifetime (Appendix B)

Project implementation

PP

DataURF

AIEx

A6SC= Article 6 Supervisory Committee

Determination made public through UNFCCC secr.

PDD made public - comments within 30 days by Parties, stakeholders or UNFCCC accredited NGOs

Automatic within 45 days

Unless review by A6SC is requested by a Party involved or 3 of A6SC

members

Determination on verified ERUs made public

through UNFCCC secr.Unless review by A6SC is requested by a Party involved or 3 of A6SC

members Automatic within 15 days

Concluding remarks• Framework• Work to define the detail of national guidelines• Work to define the detail of track 2 guidelines of

procedures.• Experience of CDM -> also specific work

– Meth LULUCF other than afforestation and reforestion

– Accreditation– Issuance and transfer of ERU– Development of URF