Introduction
Joint Implementation (JI) is a mechanism for carbon reduction cooperation among developed countries. Similar to the Clean Development Mechanism (CDM), JI is a flexible measure set out in the Kyoto Protocol, which allows Annex I [1] countries with high carbon reduction costs to jointly implement emissions reduction projects with other Annex I countries with lower carbon reduction costs. This allows for the exchange or acquisition of Emission Reduction Units (ERUs), with one unit of ERU representing one tonne of CO2. While some schemes (such as EU ETS) recognize emissions reductions under the JI mechanism, these reductions may not be applicable under the JI mechanism itself.
Participants
The JI mechanism is an international scheme under which industrialized countries and countries with economies in transition that have ratified the Kyoto Protocol are able to host JI projects and release ERUs generated by the projects.
Implementation method
Route 1
Host countries that meet all eligibility requirements for transferring and/or acquiring ERUs are entitled to verify the emission reductions or removals in a JI project and issue ERUs after verification.
Route 2
Host countries that partially meet the eligibility requirements must have their emission reductions or removals verified by the Joint Implementation Supervisory Committee (JISC) before they are allowed to issue and transfer ERUs. Host countries that meet all eligibility requirements may also choose to adopt Route 2.
[1] The "Annex I parties" defined by Kyoto Protocol includes the EU and Eastern European countries such as Czech Republic (27 countries in total), the U.S., Canada, Japan, Poland, Hungary, Croatia, New Zealand, Russia, Ukraine, Norway, Australia, and Iceland. In addition, the UN has included members of the Organization for Economic Cooperation and Development (OECD) and countries in transition (former Soviet Union and Eastern European countries) as Annex I members, while small island states, newly industrialized countries (e.g., Taiwan, South Korea, Singapore, Hong Kong), developing countries with significant industrial scale, oil-producing countries, and low-development countries are listed as "non-Annex I parties."
Source
2. UNFCCC