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Proposal on procedures of registration and implementation of JI projects in Russian Federation

First UNFCCC Workshop on the implementation of JI projects under Article 6 of the Kyoto Protocol Moscow, 26-27 May, 2004. Proposal on procedures of registration and implementation of JI projects in Russian Federation. JI projects development: benefits for Russia.

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Proposal on procedures of registration and implementation of JI projects in Russian Federation

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  1. First UNFCCC Workshop on the implementation of JI projects under Article 6 of the Kyoto ProtocolMoscow, 26-27 May, 2004 Proposal on procedures of registration and implementation of JI projects in Russian Federation

  2. JI projects development: benefits for Russia • Real GHG reduction under conditions of economic growth; GNP’s power intensity decrease. • Macro economical cost saving of GHG reduction (based on results of cost curve analysis ). • Promotion of environmental activity and innovation • Extra ecological, social and economical benefits from JI projects implemented with public financial support. • Observanceof the obligations on stabilization of GHG emission beyond the bound of the first commitment period

  3. Reduction of GHG emission in 2008-2012 due to JI project implementation creates ground for stabilization of GHG emission in further periods Emission level without JI projects Emission level with JI projects ERUs 1990 2000 2008-2012 1990 2000 2008-2012

  4. Functions of public administration in JI projects implementation procedure • Registration of JI projects. • Accreditation of specialized companies rendering services on verification of GHG reduction under JI projects. • State guarantees for offsets generated by JI project during the first budget period . • Registration of ERU’s transfer. • Accounting and control. • Transactions with state reserve of AAU including transactions with AAU’s surplus.

  5. Stakeholders activity in JI projects preparation circle (1) Investor Enterprise Application Offer Letter of Interest Authorized national JI focal point

  6. Stakeholders activity in JI projects preparation circle (2) Investor Enterprise Project Design Documents (PDD) Decision to start JI preparation procedure Authorized national JI focal point Copy Project developer* * Option 1 – enterprise is a developer * Option 2 - specialized company is a developer

  7. Stakeholders activity in JI projects preparation circle (3) Enterprise Co-ordination of selection Investor Conclusion Validator (independent entity) Copy PDD Authorized national JI focal point Copy

  8. Stakeholders activity in JI projects preparation circle (4) Recording JI data into UNFCCC data base Authorized national JI focal point Notification Notification Investor Enterprise Registration

  9. Critical functions of the authorized national JI focal point • National JI log maintenance and submission information to the UNFCCC data base • Guarantees for offsets transaction • ERU issue and transfer

  10. Functions of specialized agency • Forming of Integrated projects (block of similar small-scale projects) • Arrangements of tender for selection of consultants to be hired for PDD development • Tender for management company assignment • Accreditation of verification entities • Control and accounting arrangements

  11. Findings and recommendations • Clear and transparent national procedure defining responsibilities of the “players” is critical for complex process of international cooperation under Article 6 of the Kyoto Protocol. • Best international practice should be used for improvement of JI projects preparation and implementation procedures. • Activity of the Russian Interagency Commission on climate change should be strengthened in order to co-ordinate inter-sector activity as well as to take into account variety of interests of stakeholders (Commission could act as Authorized National JI focal point). • Specialized agency should be charged with regulation and management of the Integrated JI projects and relevant investment activity.

  12. Contacts Marina Dragan (Martynova), Vladimir Maximov Environment & Carbon Management Department Agency for Direct Investments Email: dragan@ag-di.ru Email: maximov@ag-di.ru Web site: www.ecofinance.ru

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