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Session 1 Guidelines for projects under Article 6 of the Kyoto Protocol First UNFCCC workshop on implementation of Article 6 projects under the Kyoto Protocol Moscow 26-27 May 2004. www.unfccc.int UNFCCC secretariat. Overview. What is JI? Why two tracks for JI?

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    1. Session 1 Guidelines for projects under Article 6 of the Kyoto Protocol First UNFCCC workshop on implementation of Article 6 projects under the Kyoto Protocol Moscow 26-27 May 2004 www.unfccc.int UNFCCC secretariat

    2. Overview What is JI? Why two tracks for JI? What characterizes track 1 and track 2?

    3. Cooperative mechanisms Convention(Art. 3.3, 4.2 (cooperate, jointly)) AIJ under the pilot phase Kyoto Protocol Art. 6, 12 and 17 3 Mechanisms JI ET CDM project based System with GHG emission limitations

    4. 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

    5. 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

    6. What characterizes track 1 and track 2?

    7. 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.

    8. Track 2 Key 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

    9. 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.

    10. Art. 6 project activity cycle Ex0 A6SC&COP/MOP Accreditation/Designation AIE PP Design AIE Determination A6SC* PP Monitoring PP=project participants; AIE= accredited independent entity A6SC= article 6 supervisory committee ERU= 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 AIE Determination A6SC** ERU

    11. Track 2- How does accreditation work? VERIFICATION PDD VERIFICATION ERUs Ex Accreditation List of accredited independent entities (AIE) A6SC AIEx

    12. Track 2 - Verification procedure Criteria for baselines, monitoring and crediting lifetime (Appendix B) Submits project design doc. PP Automatic within 45 days Determination made public through UNFCCC secr. Project implementation AIEx Rejects if not conform with criteria PP Unless review by A6SC is requested by a Party involved or 3 of A6SC members DataURF PDD made public - comments within 30 days by Parties, stakeholders or UNFCCC accredited NGOs AIEx Determination on verified ERUs made public through UNFCCC secr. Unless review by A6SC is requested by a Party involved or 3 of A6SC members AIEx= Accredited independent entity Automatic within 15 days A6SC= Article 6 Supervisory Committee

    13. 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