JI Track 1/Track 2

2. Track 2 procedure Verification procedure under JISC Track 1 procedure Verification procedure according to host Party rules JI Track 1/Track 2 Participation requirements (e.g.): Designated focal point National guidelines and procedures Eligibility requirements (ERU issuance, transfer and acquisition) • Party to the Kyoto Protocol • Assigned amount calculated • National registry in place for tracking assigned amount • National system in place for estimating emissions/removals • Submission of most recent • required emissions inventory • Accurate accounting of assigned amount and submission of information

3. Joint Implementation Supervisory Committee Establishment of JISC: CMP 1 Basic role: Operationalization and supervision of JI Track 2 procedure * Resignation as JISC member as of 2 May 2007 ** Resignation as JISC alternate member as of 15 August 2007

4. Mandates of the JISC Legal basis: “Marrakesh Accords” (Decision 9/CMP.1 ) “Montreal decision” (Decision 10/CMP.1 ) “Nairobi decisions” (Decisions 2/CMP.2 & 3/CMP.2 ) • Mandates: • Rules of procedure • Accreditation of independent entities • Criteria for baseline setting and monitoring • Provisions for small-scale projects • JI project design document (PDD) form(s) • Reviews • Provisions for fees • Management plan • Reporting to the CMP Similarities • Differences • No approval of methodologies • No project registration • No ERU issuance by the JISC • No limitation of LULUCF projects to afforestation and reforestation CDM experience

5. Launch ofJI Track 2 procedureon26 October 2006 2006: operationalization of JI Track 2 procedure 2007: operation/supervision of JI Track 2 procedure

6. Project development Preparation and publication ofPDD byproject participants/AIE

7. Baseline setting and monitoring • Basis: Criteria for baseline setting and monitoring in appendix B of JI guidelines • Guidance agreed on by JISC: • Baseline: on project-specific basisand/or using multi-project emission factor • Project participants allowed, but not obliged, to use approvedCDM baseline and monitoring methodologies • Additionality: various approaches possible • Provisions for small-scale projects agreed on 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

8. Preparation and publication ofPDD byproject participants/AIE 30 days:stakeholders’ comments Project development

9. 84 PDDs published for stakeholders’ comments • (8 open for comments) • Host Parties: • Bulgaria (7 PDDs) • Estonia (4) • Germany (1) • Hungary (1) • Latvia (1) • Lithuania (6) • Poland (4) • Romania (2) • Russian Federation (41) • Slovakia (1) • Ukraine (16) • 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) • Emission reductions 2008-2012: ~ 145,000,000 t CO2equ

10. Preparation and publication ofPDD byproject participants/AIE 30 days:stakeholders’ comments Participation requirementsProject approval by host PartyFees (advance payment) Project development

11. * The CMP, by its decision 10/CMP.2, adopted an amendment to Annex B to the Kyoto Protocol, adding Belarus to it.

12. Preparation and publication ofPDD byproject participants/AIE 30 days:stakeholders’ comments Participation requirementsProject approval by host PartyFees (advance payment) Preparation and publication ofDetermination byAIE Possiblereview byJISC Project development 45 days:decision on review request byParties involved/individual JISC members,supp. by 2 JISC members’/alternates’ appraisal (incl. expert inputs)

13. 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 CO2equ • Second determination publishedon 11 September 2007(“Rehabilitation of Dolna ArdaHydropower Cascade”): • Host Party: Bulgaria • Emission reductions 2008-2012: ~ 270,000 t CO2equ

14. Preparation and publication ofPDD byproject participants/AIE Preparation and publication ofmonitoring report byproject participants/AIE Carbon Market 30 days:stakeholders’ comments Participation requirementsProject approval by host PartyFees (advance payment) Fees Project approval by non-host Party (at the latest) Preparation and publication ofDetermination byAIE Preparation and publication ofDetermination byAIE Eligibility requirements Possiblereview byJISC Possiblereview byJISC Project development Project implementation Issuance of ERUsby host Party (conversion of AAUs/RMUs) Transfer of ERUs by host Party and acquisition of ERUs 45 days:decision on review request byParties involved/individual JISC members,supp. by 2 JISC members’/alternates’ appraisal (incl. expert inputs) 15 days:decision on review request byParties involved/individual JISC members,supp. by 2 JISC members’/alternates’ appraisal

15. http://ji.unfccc.int/