Demand side perspective on JI

1
Demand side perspective on JI

• UNFCCC Side event on
• Joint Implementation
• Gertraud Wollansky
• Federal Ministry for Agriculture,
• Forestry, Environment and Water
• Management

2
Importance of Joint Implementation

• Many Annex II countries have established or are
  planning to establish acquisition programmes for
  ERUs and CERs (NL, Canada, Austria, Denmark, )
• EU ETS and Linking directive give a new impulse
  to the market, demand will increase from private
  sector
• Estimates exist for overall demand for project
  based credits, but difficult to split into JI and
  CDM demand

3
Comparative advantages of JI versus CDM

• JI host countries established markets for many
  European companies
• Daughter companies in JI countries provide
  opportunity for emission reductions
• Perceived by some companies as less risky than
  CDM
• Track 1 less complicated than CDM, if
  requirements are met

4
Comparative disadvantages of JI versus CDM

• Double counting provision in Linking directive
  limits use of JI by EU countries in new EU
  members
• Some not all new MS have held up approval of
  JI projects
• Risk of eliminating JI in EU MS by establishing
  very restrictive double counting rules?
• Market prices for ERUs have tended to be higher
  than for CERs in the past

5
How to compensate disadvantages

• Simplify JI by using Track 1 still uncertain
  course for some host countries
• Give certainty about Track 2 not restrict
  investments to Track 1 countries!
• Establishment of Green Investment Schemes
• Procedures probably very like Track 1
• Avoids obstacles to JI posed by Linking directive
• Allows a coordinated approach and more control
  for host party over project portfolio

6
Expectations (1)

• What Parties and PPs expect from COP/moP1
• Confirmation of the assumptions used for projects
  already started (baseline and monitoring
  methodologies, DOEs-IEs, .)
• Security for the investments by providing the
  legal framework this means adoption of JI
  decision
• Guidance how to use the framework developed under
  CDM

7
Expectations (2)

• Experiences from CDM that can and should be used
  for JI, i.a.
• Approved methodologies for baselines and
  monitoring
• Provisions for small scale
• Accredited DOEs as IEs
• Accreditation procedures for IEs
• Rules of procedure for SC as applicable
• Use of Panels, Working groups

8
Expectations (3)

• Open questions
• Further linkeages between JI and CDM concerning
  methodologies, accreditation, .
• SC and EB are independent bodies, can make their
  own decisions
• Independent development of JI, even if using
  experiences from CDM
• But SC and EB should keep close contact and take
  account of developments in the other bodies

9
Expectations (4)

• Funding issue has to be solved, not concentrate
  only on CDM and ITL funding
• Adequate resources for Secretariat important
• JI SC can build on work already done, but has to
  adapt it to its own needs
• SC should develop a work plan for the first year
  based on guidance by COP/moP to set up modalities
  for JI implementation

10

• Thank you for your attention!
• Contact information gertraud.wollansky_at_lebensmini
  sterium.at