Joint Implementation (JI)
The Joint Implementation (JI) is the third type of Kyoto Protocol’s flexible mechanisms. Mandated by Article 6 of the Kyoto Protocol, any county with binding and quantified emission caps (Annex I party), can invest in emission reduction projects (referred to as “Joint Implementation Projects”) in any other Annex I country as an alternative to reducing emissions domestically.
JI projects are awarded tradeable Emission Reduction Units (ERUs). One ERU represents an emission reduction equaling one tonne of CO2 equivalent. The ERUs come from the host country’s pool of AAUs to ensure that the total amount of emissions credits among Annex I parties does not change for the duration of the commitment period.
Traded volumes in the Joint Implementation (JI) market was 38 Mt in 2007 compared to 21 Mt in 2006. The transaction value of the JI segment more than tripled, from €95m in 2006 to €326m in 2007.1
- Source: Point Carbon