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Joint implementation, eligibility and the Compliance Committee

Joint implementation, eligibility and the Compliance Committee. Andrew Howard, Reporting Data and Analysis Cam Carruthers, Legal Affairs Bonn, October 2007. Overview. Part I: JI eligibility Eligibility requirements Implications for JI transactions Registry implementation status

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Joint implementation, eligibility and the Compliance Committee

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  1. Joint implementation, eligibility and the Compliance Committee Andrew Howard, Reporting Data and Analysis Cam Carruthers, Legal Affairs Bonn, October 2007

  2. Overview Part I: JI eligibility Eligibility requirements Implications for JI transactions Registry implementation status Part II: Compliance Eligibility and Compliance Compliance Procedure Compliance and Kyoto Accounting

  3. Part I: JI eligibility

  4. AAU ERU for emission-reducing projects RMU ERU for projects in LULUCF activities Crediting JI projects • Host Annex B Party converts (“issues”) existing units in itsnational registry into ERUs based on JI projects • Registries transfer ERUs to investing project participants • ERUs may be sold to others under emissions trading • International Transaction log validates registry issuance and transfers • Issuance and transfer only possible - if Parties are eligible (also the acquiring Party) - if Parties registries are operational with the ITL

  5. a. Party to the Kyoto Protocol b. Assigned amount calculated c. National system in place for estimating emissions/removals d. National registry in place for tracking assigned amount e. Submission of most recent required emissions inventory f. Accurate accounting of assigned amount and submission of information JI track 2 eligibility a. Party to the Kyoto Protocol b. Assigned amount calculated d. National registry in place for tracking assigned amount JI eligibility Eligibility requirements under track 1

  6. No eligibility Cannot issue or transfer ERUs Track 2 Can issue and transfer ERUs  only after JISC verification of the project and reductions Track 1 (full eligibility) Can issue, transfer and acquire ERUs  Party may verify projects and reductions by its own procedures JI issuance and transfer No eligibility needed to participate in JI projects  eligibility only relates to ERU issuance, transfer and acquisition

  7. Eligibility progress Parties demonstrate fulfilment of eligibility through their Initial Reports • All Initial Reports submitted, most review team visits completed • 8 Initial Report Reviews published on www.unfccc.int Status of Parties’ registry implementation • 20 EU registries now ITL-connected (out of 24 currently on the CITL) • 7 non-EU registries now ITL-connected (out of 11 registries) • Most remaining work is to finalize registry documentation Most registries ready to start live operations with the ITL • Go-live activities originally planned for mid-November • EU registries must wait to go-live together with the CITL • Now checking which non-EU registries wish to start in Nov (without EU)

  8. Part II: Compliance

  9. Eligibility and compliance • Initial eligibility: 16 months after Party submits its Initial Report - unless the enforcement branch earlier decides otherwise - Enforcement Branch takes note of IRRs received - Secretariat will keep lists of eligible and suspended Parties • Further information on the UNFCCC website - Report on the second meeting of the enforcement branch http://unfccc.int/parties_and_observers/notifications/items/3153.php - Information note of September of 20 September http://unfccc.int/kyoto_protocol/compliance/enforcement_branch/items/3785.php

  10. Compliance procedure Steps/key elements • Allocation, preliminary examination • Hearings, comments from Parties concerned • Expert Advice, information from NGOs/IGOs • Preliminary and final decisions Timing and other key considerations • Expedited Procedure – 16 weeks (or less + 1/allocation) • Possible referral to facilitative branch • Enforcement branch decision by double majority • Flexibility for EITs

  11. Compliance timelines

  12. Compliance system

  13. Thank you!

  14. Eligibility and compliance Key CMP decision text ‘A Party . . .with a commitment inscribed in Annex B shall be considered … [t]o meet the eligibility requirements… after 16 months have elapsed since the submission of its [initial] report …or, at an earlier date, if the enforcement branch of the Compliance Committee has decided that it is not proceeding with any questions of implementation relating to these requirements indicated in reports of the ERTs under Article 8 of the Kyoto Protocol, and has transmitted this information to the secretariat.’ • Decisions 3/CMP.1, annex, paragraph 32; 9/CMP.1, annex, paragraph 22; and, 11/CMP.1, annex, paragraph 3

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