The Joint Implementation ("JI") mechanism is a scheme that was established following the introduction of the emission trading arrangements under the Kyoto Protocol ("Kyoto"). Kyoto established greenhouse gas emission targets for those Annex I countries that ratified the protocol. Targets could be met through a combination of national mitigation actions and the implementation of projects in foreign jurisdictions (who have also ratified Kyoto), with the emission reductions achieved 'imported' to meet the Annex I country's commitments. The JI is the mechanism to generate emission reductions through projects in industrialised countries that can be used to meet other Annex I country commitments.
The JI (alongside the CDM) was one of the more successful Kyoto measures. Projects generating emission reductions under an approved methodology can register under the JI, and will be issued with Emission Reduction Units ("ERUs") in respect of each tonne of carbon dioxide equivalent that was saved once the project is operational. ERUs have a market value, which has been principally driven through the ability of EU ETS participants to use the credits as part of their compliance, but also from Annex I countries as part of meeting their Kyoto targets (through supplementing Assigned Amount Units ("AAUs")) or for voluntary emission reductions. The provisions of the Kyoto protocol expired in 2012 and whilst the JI has continued to operate for projects registered before this time, the number of new projects registering has significantly decreased.
The JI is administered by the United Nations Framework Convention on Climate Change ("UNFCCC"). More information can be found here
Region / Country: International
