Joint Implementation

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• Joint Implementation
• in the Czech Republic
• - building on our own experience
• Climate Change Department
• Tomas Chmelik
• Pavel Zamyslicky

Climate Change Department Ministry of the
Environment of the Czech Republic Vršovická
65 Praha 10, 100 10
Phone [phone] Fax [phone]
328 E-mail Tomas_Chmelik_at_env.cz Pavel_Zamyslick
y_at_env.cz
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Contents of the Presentation

• Overview of JI projects
• JI approval and criteria
• Planned activities
• Domestic requirements for Track I
• Linking directive
• Future of JI?

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JI projects registered so far

• In total 88 projects registered (PIN)
• PCF cooperation agreement with Czech
  Environmental Agency on delivery of total minimal
  cumulated amount of 500.000 tons of CO2
  equivalent for 2002-2012
• Portfolio of projects (16 small hydro, 2
  centralized heating)
• BTG portfolio ERUPT tender (15 biomass boilers)
• Rest of projects in various stages of
  implementation

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JI projects registered by MoE
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Approval process in the Czech Republic

1. Registration of the project by MoE PIN (LoE)
2. Registration to State Environmental Fund (SEF)
   programme 2.8 (assessment)
3. Discussion in working group of MoE (suggestion
   for approval or refusal)
4. Ministerial approval (LoA)

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Criteria

• Defined relatively generally
• Priority areas (renewables, energy savings,
  transport)
• Non-priority areas also possible
• Assessment takes into account environmental and
  economic issues
• Case-by-case basis
• Room for improvement here

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Track I eligibility criteria

• Moving towardsbut not treated as an absolute
  priority at the moment (other issuessuch as EU
  ETS)
• Registries - ? Has anybody moved significantly
  further here?
• Inventories implementation of NIS started
  some issues problematic (not enough experts)
• Others should not be a major problem

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Domestic requirements for Track I

• Learning from problems in JI track 2
• Standardization to a maximum extent possible
• Validation and verification done by accredited
  local bodies
• Additionality issues? To be considered
• Simplification of procedures as much as possible
• Pooling of projects needed
• Potential?

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Linking directive

• Big problem for new member states of the EU
  (accession countries)
• Further limits potential of JI
• Reserve in NAP for indirect linking? What size?
  Will be approved (political risk)?
• Is there a room for JI in linked regime at all?
• Additionality does it make sense for EU member
  state?

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Suggestions for JI SC

• Avoid CDM-like approach to JI
• JI host countries developed countries,
  elaboration of projects in extreme detail not
  necessary
• Use maximum experience from CDM apply
  baselines, procedures as much and as simply as
  possible building the whole issue from scratch
  whole process is delayed ? Czech Republic will
  consider to stop JI activities until JI Track I
  eligibility is achieved or replace JI by GIS
  completely
• Avoid political concerns (JI being competition to
  CDM both mechanisms can live together without
  conflicts)

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How to move forward?

• What is the difference between Track I and IET
  (Article 17 trading in the form of Green
  Investment Scheme GIS)?
• JI development so far excellent example of
  extreme inefficiency!
• Perfect is the enemy of good!
• CZ plans to combine (or replace) JI and GIS
  (green AAU trading)
• Simplified procedures, pooling of projects,
  additionality treated when desired, based on
  agreement between buyer and seller
• Lets be flexible! Not overruled by rules!

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Thank you for your attention !