Transcript Document
Joint Implementation
- An overview and recent development -
Motoharu Yamazaki
UNFCCC Secretariat
http://ji.unfccc.int
[email protected]
Moscow Carbon Market Forum 2008
Moscow, Russian Federation, 28-29 April 2008
Joint Implementation
Basic principles
Market mechanism
Lowest marginal cost of abatement
Additionality to any emission reductions that would occur in the
absence of the project
Bottom-up approach, re-use and broad application principles for
standards
International supervisory and standard setting bodies
Two tracks: Track 1 & Track 2
Track 2 process overseen by the body known as the Joint
Implementation Supervisory Committee (JISC)
Joint Implementation
JI Track 1/Track 2 (1)
Participation requirements
(ERU issuance, transfer and acquisition)
Eligibility requirements
• Designated focal point
• National guidelines and procedures
• Party to the Kyoto Protocol
Track 2 procedure
• Assigned amount calculated
• National registry in place for
tracking assigned amount
Verification procedure under
JISC
• National system in place for
estimating emissions/removals
• Submission of most recent
required emissions inventory
• Accurate accounting of
assigned amount and
submission of information
Track 1 procedure
Verification procedure according
to host Party rules
Joint Implementation
JI Track 1/Track 2 (2)
Track 2
Verification procedure under JISC
• Mandatory publication procedures regarding all project steps (JI information system)
• Full transparency
Track 1
Verification procedure according to host Party rules
“Bali decision”
Request to secretariat to develop Web-based interface to be used by DFPs of host
Parties (having provided information on national guidelines/procedures) to:
• Provide transparent access to project information
• Provide information to the international transaction log (ITL) on Track 1 project
establishment
• Receive unique project identifiers to be used with the ITL
Overview of all JI projects
Joint Implementation
JI Supervisory Committee
Members/alternates:
Members
Alternate members
Annex I (EIT)
Mr. Oleg Pluzhnikov
Ms. Agnieszka Gałan
Ms. Daniela Stoycheva
Mr. Georgiy Geletukha
Mr. Vlad Trusca
Mr. Matej Gasperic
Annex I (Non-EIT)
Mr. Olle Björk
Mr. Franzjosef Schafhausen
Mr. Maurits Blanson Henkemans
Mr. Hiroki Kudo
Mr. Georg Børsting
Mr. Benoît Leguet
Non-Annex I
Mr. Carlos Fuller
Mr. Javier Andrés Hubenthal
Ms. Fatou Gaye
Mr. Vincent Kasulu Seya Makonga
Mr. Muhammed Quamrul Chowdhury
Mr. Maosheng Duan
Non-Annex I (AOSIS)
Mr. Derrick Oderson
Ms. Ngedikes Olai Uludong-Polloi
Basic role: Operationalization and supervision of JI Track 2 procedure
Joint Implementation
Legal basis:
Mandates of the JISC
“Marrakesh Accords” (Decision 9/CMP.1 )
“Montreal decision” (Decision 10/CMP.1 )
“Nairobi decisions” (Decisions 2/CMP.2 & 3/CMP.2 )
“Bali decision” (Decision _/CMP.3)
Mandates:
CDM experience
Similarities
Differences
• Rules of procedure
• Accreditation of independent entities
• No approval of
methodologies
• Criteria for baseline setting and monitoring
• No project registration
• Provisions for small-scale projects
• JI project design document (PDD) form(s)
• Reviews
• Provisions for fees
• Management plan
• Reporting to the CMP
• No ERU issuance by the
JISC
• No limitation of LULUCF
projects to afforestation
and reforestation
• No restriction on CPR
regarding ERUs issued
under JI Track 2
Joint Implementation
Status of work of the JISC
2006: operationalization of JI Track 2 procedure
Mandates
Administrative issues
• Rules of procedure
• Management plan 2006-2007
PDD forms
• PDD form
• Guidelines for users (PDD form)
• LULUCF PDD form
• Guidelines for users (LULUCF PDD form)
Verification procedure
• Procedures on public availability of documents
• Procedures for appraisals of determinations
• Procedures for reviews
Accreditation
• Standards/procedures
• Panel
Baseline setting and monitoring
• Guidance on criteria
Small-scale projects
• Provisions for SSC projects
• SSC PDD form
• Guidelines for users (SSC PDD form)
Fees
• Provisions
JISC report to CMP 2
• Main report
• Addendum
Adoption/agreement
(revision) by JISC
Adoption by CMP
JISC 01
JISC 04 (05)
CMP 2
-
JISC 03
JISC 03 (06)
JISC 04
JISC 04 (06)
CMP 2
CMP 2
-
JISC 04
JISC 04
JISC 03
-
JISC 04 (06)
JISC 03
-
JISC 04
-
JISC 04 (06)
JISC 04 (05)
JISC 05 (06)
CMP 2
-
JISC 04
CMP 2 (endorsement)
prior to JISC 04
after JISC 05
-
Launch of
JI Track 2 procedure
on
26 October 2006
Since 2007: operation/supervision of JI Track 2 procedure
Joint Implementation
JI Track 2 project cycle
Project development
Project implementation
Preparation and publication of
PDD by
project participants/AIE
Preparation and publication of
monitoring report by
project participants/AIE
30 days:
stakeholders’ comments
Fees (advance payment)
Project approval by host Party
Participation requirements
Fees
Project approval by non-host Party
(at the latest)
Preparation and publication of
Determination by
AIE
Preparation and publication of
Verification by
AIE
45 days:
decision on review request by
Parties involved/
individual JISC members,
supp. by 2 JISC members’/alternates’
appraisal (incl. expert inputs)
15 days:
decision on review request by
Parties involved/
individual JISC members,
supp. by 2 JISC members’/alternates’
appraisal
Possible
review by
JISC
Possible
review by
JISC
Carbon
Market
Eligibility
requirements
Issuance of ERUs
by host Party
(conversion of
AAUs/RMUs)
Transfer of ERUs by
host Party and
acquisition of ERUs
Joint Implementation
Baseline setting / monitoring
Appendix B to JI guidelines (adopted by CMP)
Guidance on baseline setting and monitoring (adopted by JISC)
Baseline: on project-specific basis and/or using multi-project emission factor
Project participants allowed, but not obliged, to use approved CDM baseline and
monitoring methodologies
Additionality: various approaches possible
Provisions for small-scale projects (adopted by JISC)
JI SSC definitions: like for CDM SSC project activities (non-A/R) – revised by CMP 2
Main difference to CDM approach: No limits on bundling
Joint Implementation
Stakeholders’ comments (status)
133 PDDs published for stakeholders’ comments
(4 open for comments)
Host Parties:
• Bulgaria (10 PDDs)
• Estonia (4)
• Germany (2)
• Hungary (2)
• Latvia (1)
• Lithuania (7)
• Poland (7)
• Romania (2)
• Russian Federation (75)
• Slovakia (1)
• Ukraine (21)
• Czech Rep. (1)
Technologies:
• Renewable energy (biomass, wind, hydro)
• Methane avoidance (gas distribution, landfills, coal mine)
• Destruction of nitrous oxide from chemical processes (nitric acid production)
• Energy efficiency (manufacturing industries, district heating)
• Fuel switch (manufacturing industries, transportation, power generation)
• Reduction of HFC, PFC and SF6 emissions (chemical and metal industries)
Emission reductions 2008-2012:
~ 251,000,000 t CO2equ
Joint Implementation
Participation requirements (status)
Designated
Focal Point
National
guidelines
and
procedures
Japan
Liechtenstein
Lithuania
Bulgaria
Luxembourg
Canada
Netherlands
Croatia
New Zealand
Czech Republic
Poland
Denmark
Portugal
Estonia
Romania
European Community
Russian Federation
Finland
Slovenia
France
Spain
Germany
Sweden
Hungary
Switzerland
Ireland
Ukraine
Italy
UK
Designated
Focal Point
National
guidelines
and
procedures
Austria
Belarus*
Belgium
* The CMP, by its decision 10/CMP.2, adopted an amendment to Annex B to the Kyoto Protocol, adding Belarus to it.
Joint Implementation
Accredited independent entities (1)
“Montreal decision”
Designated operational entities (DOEs) under the CDM may act
provisionally as accredited independent entities (AIEs) under JI
Determinations/actions valid only after accreditation
Accreditation status
15 applications (13 DOEs) to date, of which:
• 14 desk reviews conducted
• 13 on-site assessments conducted
• 3 indicative letters issued
• No witnessing assessment started yet
Joint Implementation
Accredited independent entities (2)
• Application as of 28 April 2008
Ref No.
Entity name
Sectoral scopes applied
0001
Det Norske Veritas Certification AS (DNV)
1-15 (all scopes)
0002
Japan Quality Assurance Organization (JQA)
1-15 (all scopes)
0003
Deloitte Tohmatsu Evaluation and Certification Organization Co., Ltd (TECO)
1-10, 12-13, 15
0004
Lloyd’s Register Quality Assurance Ltd. (LRQA)
0005
JACO CDM., Ltd.
0006
Japan Consulting Institute (JCI)
0007
Bureau Veritas Certification Holding SAS
1-15 (all scopes)
0008
TÜV SÜD Industrie Service GmbH
1-15 (all scopes)
0009
Spanish Association for Standardisation and Certification (AENOR)
1-15 (all scopes)
0010
SGS United Kingdom Limited
1-15 (all scopes)
0011
TÜV NORD CERT GmbH
1-15 (all scopes)
0012
TÜV Rheinland Japan Ltd.
1-15 (all scopes)
0013
SQS, Swiss Association for Quality and Management Systems
1-15 (all scopes)
0014
KPMG Sustainability B.V. (KPMG)
0015
Germanischer Lloyd Certification GmbH
1-13
1-15 (all scopes)
1-5, 8-11, 13
1-4, 13
1-3, 7, 10, 13
Joint Implementation
Determinations (status)
Determinations regarding PDDs
First determination deemed final on 26 March 2007
(“Switch from wet-to-dry process at Podilsky Cement”):
Host Party: Ukraine
Emission reductions 2008-2012:
~ 3,000,000 t CO2 equ
Joint Implementation
UNFCCC JI website
http://ji.unfccc.int/
Reporting and review
Overview 2006-2008
Reporting
Review + Reports
(by Parties)
(by ERTs)
• Initial report: deadline 1 Jan 07
– 37 reports received by 1 Mar 08
– Most of them received in Dec 06
– Late submissions:
Iceland (11 Jan 07), the Russian Federation
(20 Feb 07), Canada (15 Mar 07), Romania
(18 May 07), Bulgaria (25 Jul 07)
– Monaco 7 May 07 (ratification 27 Feb 06, entry
into force 28 May 06)
– New KP Parties:
Croatia (rat. 30 May 07, e.i.f. 28 Aug 07),
Australia (rat. 3 Dec 07, e.i.f. 2 Mar 08)
• Annual report: deadline 15 Apr 08
• Periodic reporting (NC4): deadline 1 Jan 06
– Pending submissions by Luxemburg
• Initial review:
– 37 review reports in 2007-2008
(decision 26/CMP.1 and 22/CMP.1)
– 32 reports published, 4 under
preparation, 1 review pending Belarus
– 2 new initial reviews: Australia, Croatia
– 37 + 4 Review Reports of the 2006
Inventory submission under the
Convention (decisions 7/CP.11)
• 38 Annual Review Reports to be
prepared by 15 Apr 08 (Croatia not
included)
• Periodic review (NC4) and RDP review:
– 37 In-depth Review Reports in 2007–
2009
– 16 IDRs published, 10 reviews planned
for May 2008
Reporting and review
Establishing eligibility
Eligibility to be established (decision 11/CMP.1)
No later than 16 months have elapsed since the submission of the initial
report unless the Enforcement Branch of the Compliance Committee
finds that the Party does not meet eligibility requirements
Early eligibility: not applied
Status: 25 Parties are eligible as of 28 April 2008, another 4 parties will
become eligible as of 29 April 2008:
– Ukraine: 29 April 2008 (expected)
– Russian Federation: 20 June 2008 (expected)
Eligibility status released from the CAD to the ITL and eligible Parties
could perform transactions, e.g. on emission trading
Reporting and review
Maintaining eligibility
Decisions 11/CMP.1 and 15/CMP.1
Party continues to meet the eligibility requirements unless the
Enforcement Branch of the Compliance Committee decides that the Party
does not meet eligibility requirements
Party may start annual reporting from the year following the submission of
the initial report, on a voluntary basis
2008 inventory submission for Kyoto Parties is already the KP annual
submission for Parties to maintain eligibility
COP13/CMP3
Bali Roadmap
A two year negotiating process for a broad and robust
response to climate change (deadline 2009).
Components:
•
A new negotiation process under Convention
•
Reducing emissions from deforestation
•
Technology transfer
•
Kyoto track: time table for the AWG, adaptation fund
and the review of the Protocol
COP13/CMP3
Bali Action Plan
Enhance the implementation of the Convention (along with
Kyoto negotiations)
An Ad Hoc Working Group on Long-Term Cooperative
Action (AWG-LCA) to address:
•
Nationally appropriate mitigation commitments or
actions by developed countries and mitigation actions
by developing countries;
•
Actions to adapt to climate change and promote
climate-resilient development;
•
Finance and technology cooperation to support
action.
Bangkok Climate Change Talks
AWG-LCA 1
Agreed on work programme 2008
Organization of workshops to deepen understanding and
clarify elements in Bali Action Plan
•
Adaptation;
•
•
•
•
•
•
•
Financial flow;
Technology transfer;
Deforestation / forest degradation;
Sectoral approaches, sector specific actions;
Risk management and risk reduction strategies
R&D of innovative technology
Shared vision of long-term cooperative action
Bangkok Climate Change Talks
AWG 5
Emission trading, project-based mechanisms and LULUCF
should continue to be available after 2012
Consider:
•
Improvements to emission trading and project-based
mechanisms;
•
•
•
Treatment of LULUCF in 2nd commitment period;
Approaches targeting sectoral emissions;
Broadening of coverage of GHGs, sectors and source
category;
Approaches on emissions from aviation and marine
bunker fuels;
Implications for carbon market
•
•