Ms. Daniela Stoycheva Chair of the JISC COP/MOP 2, Nairobi 14 November 2006

1. JI Track 2 procedure and its role in JI Track 2 projects UNFCCC Side Event JI Track 2 Project Cycle: From a Project Idea to the Market Ms. Daniela Stoycheva Chair of the JISC COP/MOP 2, Nairobi 14 November 2006

2. Overview JISC’s roles in JI Track 2 projects • Process development role • Supervisory role • What we have accomplished over the last year • What will be doing next year • Closing remarks • how all we do fits into and helps the various phases of the project cycle

3. Process Development Role Development of project design document(s) (i) Elaborate JI PDD form(s) for consideration by the COP/MOP • Develop guidelines for users of the JI PDD form(s) Guidance on baseline setting and monitoring • Develop guidance on criteria for baseline setting and monitoring, including provisions for small-scale projects • Review and revise reporting guidelines and criteria for baseline setting and monitoring in appendix B of the JI guidelines Make recommendations to the COP/MOP on any required revisions of the JI guidelines

4. Supervisory Role Supervision of Track 2 procedure (i) Review determinations with regard to PDDs • Review determinations with regard to emission reductions/enhancements of removals Accreditation of independent entities • Further elaborate standards and procedures for the accreditation of independent entities • Accredit independent entities • Review standards and procedures for the accreditation of independent entities in appendix A of the JI guidelines and make recommendations to the COP/MOP on revisions to these standards and procedures

5. JISC in 2006 • 5 JISC meetings • Transparency (observers, webcast, public calls, docs on the web, Q&A session at SB24, technical workshop) • Efficient work (planned work, on time, based on the experience of EB, significant contributions from JISC members) • Ambitious work programme for 2006 completed! • 2 Accreditation Panel meetings • Develop of required forms and procedures • Opening of the accreditation process • 1 workshopheld in 2006 • Inputs and views on the operationalisation of Track 2 • Launch of Track 2 (26 October)! • all required forms, guidelines, etc. developed by the 5th JISC meeting

6. JISC in 2006 (2) • Parties involved in JI are requested to submit information on the Designated Focal Points and information on their National Guidelines and Procedures for approving JI projects • As of 1 November: 13 Annex I Parties have informed the secretariat of their JI designated focal points: Austria, Bulgaria, Canada, Czech Republic, Finland, Germany, Netherlands, Romania, Slovenia, Spain, Sweden, Ukraine, United Kingdom • As of 1 November: 8 Annex I Parties have submitted their procedures for approving JI projects: Austria, Bulgaria, Czech Republic, Germany, Netherlands, Romania, Ukraine, United Kingdom • The JISC through the COP/MOP urges those Parties that haven’t done so to do so as soon as possible • 6 October: announcement of opening of application process for entities wishing to become accredited independent entities (AIEs) under JI • 12 indications of interest / 3 applications received to date •  26 October: verification procedure officially started (Track 2 launched) • 5 PDDs already submitted (1 Ukraine, 1 Bulgaria, 3 Russia)

7. JISC in 2007 • 4 JISC meetings (maybe more ?) • Transparency (observers, webcast, public calls, docs on the web) • Efficient work (planned work, on time, based on the experience of EB, significant contributions from JISC members) • 6 Accreditation Panel meetings - consideration of applications, including establishment of assessment teams and related activities of the teams • 2 workshopheld in 2007 • Bringing together project cycle participants • Interaction with independent entities and designated focal points • Collection of views and inputs from various stakeholders • Q&A sessions at the sessions of the subsidiary bodies • Communication/interaction with stakeholders • Receipt of views and inputs on work of the JISC • Expected situation by end 2007 • 125 projects PDDs submitted for determination • 25 applicant independent entities’ accreditation process underway

8. Closing remarks • Evident that the development of all the process-related materials in an expeditious and efficient, and to the extent possible simple, manner facilitates the roles of others in the project cycle • As the JISC shifts now to the actual consideration of proposed projects and accreditation of independent entities, we hope to do so both effectively and quickly, given the approaching start of the first commitment period • All that we do, we try to do in a transparent manner and to take into account the various views and concerns of the many stakeholders, while ensuring the integrity of Track 2 projects • Finally, we continually aim to improve on our working methods and the process developed – and ask for all to continue to assist us in this endeavour • However, to do all this, funding is needed as presently there is a shortfall for the biennium of more than 2 million USD