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1st Sustainable Development Mechanism Bonn, 24 March 2012 Future of JI – Business Perspectives. Hanna-Mari Ahonen IETA. Business needs clarity. JI is important model for new market mechanisms (host country cap, country-driven)

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1st Sustainable Development Mechanism Bonn, 24 March 2012 Future of JI – Business Perspectives


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    1. 1st Sustainable Development MechanismBonn, 24 March 2012 Future of JI– Business Perspectives Hanna-Mari Ahonen IETA

    2. 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