Conditions for CDM and JI projects
In order to be able to participate in the project-based mechanisms a country is required to have ratified the Kyoto Protocol and to have appointed a national project authority; a Designated National Authority (DNA) for CDM or a Joint Implementation Focal Point (JIFP) for JI, and to have communicated this to the Climate Convention Secretariat. The flexible mechanisms shall be a supplement to national measures, so that a major part of the effort should happen on a national level. Projects must be approved by those countries involved.
In order for CDM and JI projects to be credited with emission allowances the reductions in emissions must be “additional”, i.e. the reductions must exceed what would have occurred without the project. This is decided with the assistance of reference lines for anthropogenic emissions (baselines). CDM projects must also contribute to sustainable development in the host countries. A supervision plan shall be established for the project and projects shall be validated by an accredited independent body before they may be registered. Emissions reductions must be able to be verified by the host country (JI) or the independent body (CDM and JI) and Emission Reduction Units shall be recorded in a national registry. See more under Project Cycle.
Most JI projects have hitherto been implemented under track 2 and overseen by the JI Supervisory Committee.
A host country is eligible for JI track1 if it has:
- calculated its Assigned Amount,
- put in place a national system for estimating emissions and removals of greenhouse gases and a national registry,
- submitted its most recent report on emissions and removals of direct GHGs
- submitted supplementary information on Assigned Amounts Units (AAUs) and made relevant adjustments for any emissions reduction credits transactions which might have taken place.